Just because there are three units there doesn't mean that it is legal.We currently manage a 2 unit that has an extra house on the property that we let the tenants use for storage as the property is only zoned for sfr/duplex.

Most bankers (regional banks in cali) I'm talking to tell me they don't want to touch anything under 1.20 - this actually often means more than 20% down for investment properties here in cali, but I think you can find some gems that have a better ratio.That said, BofA traditionally has never been hungry for any kind of business, I rarely work with those guys when you have all the regional banks that really want to earn your business...JR

So, we'll add roughly $100 extra a month for that.

No need to pay any extra for this.

In essence it's earned income it's just that the government doesn't see it that way unless your business is paying you a management fee.

Assuming that maintenance and repairs will cost 20% of gross rents (I believe this number to be way north of what it will actually cost) we arrive at $1,015 for maintenance and repairs.I will also have an extra $2,000 in a revolving CD ladder as a slush fund to fix whatever Murphy's Law throws at me.So:Gross rents: $5,076Taxes: $701Insurance: $766Debt service: $2520Maintenance and repairs: $1,015Cash Flow: $74I realize this will be basically a wash as far as cash flow for the first year, but I think I have all my bases covered as far as projecting what expenses will be.

His compensation is earned from the duties performed in the company.

If I went this route I would not have to spend extra time in school either because I meet all the prereqs already.

REI_Kevin, can you explain how you collected the extra 49k at closing?

I would like a little more thought on this…as to how does the whole thing work and how can we invest properly in pre-foreclosures to earn secure profits.