Rent cannot be more than 50% of income, 59% if it is non-taxable income.

It seems there’s a common misconception largely influenced by social media, online courses, and influencers who oversimplify the process that real estate is an easy, passive way to generate income with minimal effort.

Do you have other ways to decrease your expenses or increase your income aside from real estate? 

Long story short, you spend a month cleaning and renovating, then you find a new tenant after just 15 days.In total, you lost three months of rent income ($3,000) plus paying utilities ($500).

@Jemini LeckieRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

This project is $2.5M, with gross revenues well over 10%. 

Building a rental portfolio that replaces your income takes years and a lot of effort, this is especially true in our high price high interest rate market.You need to have at least a 10 year vision when buying real estate.

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

The 3 of them will gross closer to 4K, net about 3K, per month. 

Currently, my strategy is to rent to section 8 tenants for the guaranteed income.