If it still cash flows after taking those into count it's not a bad deal!

We've been looking out of state a lot as the market here in Utah is crazy but haven't pulled the trigger on anything yet.I recently heard of someone who has been extremely successful in their real estate career who built a new primary residence every 2 years which came with certain tax benefits and profit in an appreciating market.So I thought maybe instead of finding a rental property to buy we could build a new primary residence and rent out our current home which has appreciated about 60% in the 5 years we've owned it.

I'm surprised I didn't sign up here sooner considering I own a few Bigger Pocket's branded books, but wanted to introduce myself.I'm in my early 30's and have made a career in the tech industry as a systems engineer.

@Vincent Plant if you have any bad debt ie. credit cards pay them first.

Typically I look for a businessman who has good income monthly but shows little income on their tax return because of tax write offs or someone who has great income but has bad credit that is "excusable". ie: Medical problems, previous job loss, auto accident, that kind of thing.

Don't feel bad, my $120k cash purchase cost me $8,469.63 to close...

I guess she has been there for a number of years and the place is still standing so can't be that bad... 

There is never a bad time to invest in real estate, but there are certainly bad investments out there.

For someone that's not as conservative, or a different view on the next recession, they might have a different opinion than me on all of this2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

She will be a bad choice as a tenant.Be thankful she asked so you can reject her application.