Investment Info:

Single-family residence buy & hold investment.

Purchase price: $800,000

Cash invested: $400,000

Home I rent to a family of five

Hi @Jamie Parker I was looking for passive income and the property was newly renovated so it seem easier to acquire with little to no work needed for tenants to move in immediately. 

Here's my situation:Debts$127K loan @ 16.99% for an investment property rehab - $1963/months fixed$50K Heloc against primary obtained when rates were low and has since adjusted to market (high) rate $36K (three business credit cards at diff rates, lowest at 22% apr)IncomeMortgage 1 income after expenses (primary carrying the heloc -) - $600/monthMortgage 2 income (also primary) - $ 162/month ( not enough equity in this to sell right away ($70k) but area is growing like crazy)Mortgage 3 income (investment) - $720/monthMortgage 4 income (this is the property the127k loan was taken against) - $856/month - This is the one i am considering selling.

Because if all you have is insurance and someone gets a really good lawyer, they can max out all your insurance and then go after properties, income, etc.

I'm consider buying a property in South Denver to use as a MTR but am struggling to determine the appropriate monthly income in my underwriting.

By being "disregarded," it does NOT mean that the entity has no legal standing --- some people think the limited liability protection is reduced or not there because of this tax filing status.Hope this helps. 

This reduces the need to have so much dry powder upfront as you will be reusing the money over and over again ideally.All things considered, I prefer a flexible Home Equity Line of Credit with interest only payments on the portion that I use rather than making principal and interest payments on an amount of money that I may not need right away as I make investment choices over time.

I have questions: was the padsplit net income worth the time management and effort?

If a tenant is regularly late on payments, there is a very high probability that they will eventually stop paying or violate the lease in other ways that cost you far more than the late fees you see as "extra income."

Its a Colorado-specific situation, I guess I should have been more specific:Portable tenant screening reports (PTSR) pursuant to HB23-1099 § 38-12-902(2.5).(2.5) "PORTABLE TENANT SCREENING REPORT" OR "SCREENINGREPORT" MEANS A CONSUMER REPORT PREPARED AT THE REQUEST ANDEXPENSE OF A PROSPECTIVE TENANT BY A CONSUMER REPORTING AGENCY,WHICH REPORT INCLUDES THE FOLLOWING INFORMATION ABOUT APROSPECTIVE TENANT AND THE DATE THROUGH WHICH THE INFORMATIONCONTAINED IN THE REPORT IS CURRENT:(a) NAME;(b) CONTACT INFORMATION;(c) VERIFICATION OF EMPLOYMENT AND INCOME;(d) LAST-KNOWN ADDRESS;(e) FOR EACH JURISDICTION INDICATED IN THE CONSUMER REPORT.....Link to the full Bill