While your property management companies provide monthly statements, having a dedicated account will make it easier to track transactions, verify statements, and manage cash flow.

Last year we were able to connect an investor of a coastal six plex with our personal credit union and due to strength of borrower and property, they provided a non-member with a 25% down mortgage with a 25 year amortization on a property the seller was requiring 'cash only' due to the presumed challenges of multi family financing. 

Purchase price: $25,000 Cash invested: $5,000 I bought this property in a package of 4.

Sum with Gross Margin and that's your EBIT (earnings before interest and taxes).Next subtract out interest expense and add in any interest income(probably none of that).That gives you net profit before taxes.Then subtract out tax expense.That final number is your Net profit or loss.The principle is accounted for on your balance sheet as you pay your loans you reduce your mortgage liability which increases your balance sheet.

That property would never cash-flow with today's interest rates.   

You are buying the property with a cash flow-that's great!

You can earn a big payday when you research and make a sound investment, but you can just as easily lose big if you don’t know what you’re doing.

Purchase price: $177,000 Cash invested: $68,000

I understand that we all would like to be able to buy cash flowing rental properties at a low interest rate with zero deferred maintenance and sit back and collect checks.

Balance of current loan with private lender is about $470k.pro forma (and actual cash flow) runs about $1200 net each month.Property is owned by an LLC of which we are the two members.Last week I got a quote from a company for a DSCR loan for 9.25%.