That's not a guideline, it's just a product of the math specified in the guidelines.Once your net rental casfhlow is 2.5x your personal housing expense + all consumer debts, you can carry on getting Fannie loans without any other source of income.

Hello, A developer I believe sent me some properties with already everything analyzed. of course i will due my homework as well but what is my next step.

Let's say someone has an interest only line of credit secured by investment property, and that line has a $100k limit at 5% (using round numbers for easy math). 

A better approach may be to rent the garages and storage spaces separately, depending on how this property is set up.As it stands, my math shows you ($412)/month.

@Ryan S.I like 100% of small deal.But with the right people and the right deal, I’d reconsider if the math persuaded me to.

Run numbers using BP calculators (I feel like that math helps build confidence).     

@Austin CookeWhen you find a property and the math is dialed down based on factual information.

I am an engineer so I use a detailed spreadsheet.I add up all my costs and these are many and subtract that from my estimated income.I look at similar properties and see what rates they are getting and how often they are booked.Excel does the math for you once you have all the numbers.Remember for a VRBO you have to pay for the utilities (don't forget cable or satellite TV and internet), consumables and furnish the place.

I created a "dumb" calculation with obviously fake numbers to make the mental math easier.

Anyone have experience with what math lever most influence IRR?