Hi Everyone,I recently purchased a rental property in East St.

We are looking at purchasing a home and renting it out in an area that we want to live in eventually in the Tahoe area.

.* Residential properties (2-4 units) are mainly valued by sold comps and not with the income approach, since these properties are typically not purchased for their income potential exclusively.* adu/jadu's add contributory value to the property as a whole, which may or may not = the cost to build them.

Not a tax advisor, but another method is to classify your personal purchases as capital contributions to the business.

It will depend on the type of loan you take for the rental property purchase.

Purchase price: $120,000 Cash invested: $25,000 Sale price: $150,000 2 FOUR PLEXES What made you interested in investing in this type of deal?

Hello, I'm new to real estate and I'm looking to purchase my first property in Chicago .

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

At any time during the 48 month lease the property can be purchased.

Starting with a cash purchase, renovate and refinance to potentially recover invested capital (as much as possible).I'm optimistic about this approach and eager to see how it unfolds!"