Financed with an FHA loan and mortgage being right about $2,000 monthly, included escrow for insurance and homeowners' insurance.

Even though the LLC is a pass-through organization for tax purposes, you should speak with a tax expert to find out how it can affect your unique tax circumstances.In conclusion, a number of considerations, including as your risk tolerance, the value of the property, the conditions of your mortgage, and your long-term investment objectives, will determine the ideal moment to create an LLC for your house hack.

This includes learning about it.Not everything works for everybody. 

Net Operating Income is simply your income left over after all business expenses, not including principal, interest, or any reserves (since those aren't expenses yet). 

Most businesses, including the real estate business, is about taking calculated risks.

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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

If that's not possible, then we pay the utility and bill it back to the tenant or we increase their rent and include utility costs in that charge.At a bare minimum, you need to find a way to monitor utility use and put a stop to this before the bills get so big.

For other folks, here are some other entities that would, if you sold the property to, have negative tax consequences: YouYour spouseAny of your lineal ascendants or descendants (parents, children, grandchildren, and the spouses of children, grandchildren, — including legally adopted children)Any investment providers or fiduciaries of the IRAAny entity (like a corporation, LLC, or trust) where a disqualified person owns more than 50%Any entity (like previously listed) where the IRA account-holder is an officer, director, a 10% or more shareholder, or a highly compensated employee

The plan includes how they will pay for arrearages and typically, the arrearages will be paid for over 3 or 5 years (36 or 60 payments).

For me these inspections have never presented any problems.