That helps some...but your variable expenses also go up too - property insurance & taxes - so a lot of your rent increases go to offset rising variable expenses.I started at the age of 47 in 2018 and we bought properties fast and furious - 12 the first year, 10 the next, and 9 in 2021 and currently have 38 properties. 

- Warrney => insurance => make money by delaying & denying claims.6) PMC - finding a good one is TOUGH!

We built it out of necessity and started same way as everyone, cut our teeth on bad decisions.

The only part that Property 1 pays on that loan is the escrow for property tax & insurance for Property 1.Thank you for your insight.You need to look at purchase price to determine cost basis, not how you financed the purchase.

If it's in a high tax /flood area taxes and insurance could easily be 5-6k or half that then with title insurance points and closing it could make senseWhat is the breakdown ?

This was the first property we carried flood insurance on, during our project.

I have also filed a claim against his insurance company with hope of getting at least our monies from the contract back.    

How long will they have to cover property taxes etc for the decision they make?

No decision yet, but it's looking good for the investor, as they were able to find about 20 other houses in the area that have been operated as STRs for years with no complaints.

Then feel free to make a more informed decision.