.- In effect, Mike's net Tax obligation would be zero (until the property was sold), and Joe would get an income of $200 per month.

I will also segregate the damage deposit.In NC the courts look to see if it walks like a duck, quacks like a duck, and swims like a duck.. if it does then the court will call it a duck...I always advise my client to tell me what they want and then I make sure my documents will lead to that end.This can be tricky and filled with traps for the unwary..

Others, like an eviction, major tenant damage, or a new roof only happen once in a great while, but can kill you if you're unprepared.An overall area vacancy rate may not be that useful if you have a single property.

Operating expenses include taxes, insurance, management (even if you do it), maintenance, advertising, utilities (at least during vacancies), capital expenses (although not technically an operating expense), entity maintenance, legal fees, evictions, court costs, evictions, damage done by tenants in excess of the security deposit, I could go on and on.At any rate, you left out all of these expenses, which means your negative cash flow (even with your interest only loan) would be a monthly LOSS of about $768 per month (over time).Good Luck,Mike

It is possible to manage from out of state, but to do this effectively you need local assistance.

The new North Carolina law, which goes into effect January 1st, essentially ends stated-income loan applications for state-regulated loans, applications where borrowers estimate their income and lenders usually don't check.

Therefore, the higher the turnover and the more damage done, the more the management company makes.

Effectively, you have that money invested in this property.

h)If you could relive the past again what things would you change, how do those things effect your current goals?

Make that call to have someone crawl the house and see if you have termite damage.