But it did not, or maybe, have not happen just yet ;)) because It happened to my friend's property; and he didn't even plan for it, pure luck, but that's how things happen sometimes.Everything was working fine, had a good tenant that I inherited from the seller, payment covered all my households expenses almost, so my 5-6K net monthly salary was playing money basically, and I did play ;')).

Let me know if you want to set up a time to meet for lunch or a drink so we can talk more !

Currently I am trying to analyze potential leads with the VA Loan as purely an investment property that will cash flow after I leave ABQ.

I am using financing which does have cost associated over a pure cash buyer.

I wanted to see what type of factors can attribute to a properties marketed like this:Listing brokers not knowing what the true replacement costs are today (hard, soft, land costs) and purely using this term for marketing purposesThe property being built many years ago when construction costs and land value were considerably lower than they are todayI'm wondering if the original owners depreciation is also being considered?  

Feel free to pm me or give me a call, i would love meet for lunch or grab a drink one day. 

If you did that, the numbers would actually work out better.Seed Capital (down money as debt) + Mortgage Deal: Investor charges: 6% interest only, puts up 30%Bank charges: 5% interest only puts up 70%Deal manager owns 100% of the cash flowInterest Due to investor per month: $150 / monInterest Due to bank per month: $292 / monCashflow after debt service: $258 / monThere also is Seed Capital (down money as equity) + Mortgage Deal:Equity split: 30% Investor / 70% Deal ManagerBank charges: 5% interest only puts up 70%Deal manager owns 70% of the cash flowInterest Due to bank per month: $292 / monCashflow after debt service (to bank): $408Income Split: Investor ($286 / mon) | Deal manager ($122 / mon)Either situation works out better than pure cash.

Pure investment property math is far more generous. [ Rent * 75% - PITI  = X ] If X is a positive number, your DTI is improved and there is no liability included in the DTI math.

He's from here, just working in a hospital which is a secure but dead-end job (he's a doctor, well-educated, great English, but doesn't smoke/drink so no chance for advancement...priorities, huh?).

(I am getting in purely for the passive cash flow, but I am willing to work to get that part started.)