With DSTs you need to make sure that the various fees don’t negate your profits.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

I tried using the biggerpockets rental calculator this morning and the cashflow was negative, but I may have been too conservative with the numbers.

When I run the numbers based on these rents, the property operates at a negative cash flow.If I increase the studio's rent to $1,400 per month, the property becomes cash-flow positive.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I love section 8 but it comes with positives and negatives just like any other strategy.

Just remember: most negative reviews are written by problematic tenants.

This coming year set the goal of getting more committed to learn and expand my knowledge to avoid previous mistakes taken as well as to be able to effectively continue to expand my portfolio.I’m here to connect with others who are also passionate about real estate, and I’m eager to learn from your experiences, insights, and advice.

 @Jessica Frisk I would not be keen on the 15-yr fixed rate mortgage if that makes you cash flow negative.

But, for instance, I sent them a notice of rent increase effective February 1 and needed them to confirm that they have accepted the new payment terms through our electronic payment system, and even after repeated notices, they are not responding.