As a lender, the three main factors we look for are as follows:Credit: Typically you’ll find most lenders require a minimum qualifying score of 620.

Usually, that “something” is shares in an active corporation (typically referred to as an operating corporation or optco) or assets.

Not that says much..And I am getting max rent for the neighborhood.. typical 3 bedroom in neighborhood goes for about 700, I'm getting 775, the 2 bedroom is very small, about 600sq feet.

Hi Eric, Typically passive income/losses (rental income) can only be used to offset other passive income. 

Also rent is typically 1% of the ARV which would put the rent in the $1000 - 1100 range. 

Plus parents typically want to feel like they are helping their kids when they can.

The other thing is see is people using light pastel colors like tan or green or blue in paint with a bright white border trim .

Details in MLSUnits: 6Taxes: $5874 (annual)Gross Income: $48,600 ($675 per month)Net Operating Income $38,838Total Expenses: $9762Vacancy Rate: 5%Asking Price: $449KOwner pays Trash & Water______________________________________________________________Based on the expenses I am assuming that the property management is completed by the owner and that they are including ~$4K a year in insurance.I ran the numbers in my own Deal Analyzer and I added:5% of Effective Gross Income as Maintenance Expense 10% of Effective Gross Income as Property Management ExpenseBumped the vacancy rate from 5% to 10%Insurance: $3000 (annual $500 per door)Water: $3240 ($45 per door - typical in city)Trash: $1,800 ($25 per door - complete guess)$12K for improvements ($2k per door)20 year note @ 5% with 20% down (assuming full asking price)2% Closing costs______________________________________________________________My numbers show a Cap Rate of 5.7%, cash on cash return of -5.12% and -$1,668 of annual cash flow. 

On larger deals, say 10+ units for example, the seller will typically list their building with a specific broker, not on the MLS.

Rentals typically you want to hold in an llc or partnership.