My focus is cash flow so I accept the fact that the neighborhood is below average (but not a war zone area).  

Calculation and distribution of the k-1s that flow to your 1040 anyway?  

So should be able to get 80% LTV at around 24k) I will make sure that my cash flow will cover all LOC expenses. 

I work full time in health care where i want to start building other forms of cash flow.

Will the monthly cash flow go up?

I understand that the rules would help you determine if the property cash flowed and that the 2% one was used first, while the 50% was used more like a final factor (in the example).What doesn't make sense is why the property was deemed a bad idea, wouldn't the fact that the 50% rule gave 0 cash flow (rather than negative) mean that the investor would still be able to make money on loan pay down?

Just upgraded to PRO and started practicing with the calculator on a few properties.My wife and I are interested in investing in multi-family housing to rent out for cash flow and capital appreciation downstream.

My initial strategy is defined: buy and hold multifamily investment properties that cash flow in and around where I live, Philadelphia, PA.

Creating cash flow is always a great idea.

(Likely resale value on this second duplex is $110)Downside: more financing = more exposure to risk (the loan is 20 yr, first 5 years fixed, then floating.) downside is less cash flow because more goes to debt service.