Formula & Components DSCR Formula: Net Operating Income (NOI): Income after operating expenses (excluding debt service).

But it really gets serious with how you handle showings, your application, how you conduct tenant screening, credit / background checks and your communication style throughout all of this.

You can close the loan in an LLC so that when you file the 1st year you can pay all payments out of your business bank statements and it will not go against your DTI for future home purchases or refinances.

Thanks for all the help everyone. 

All in all, it really depends on how they are built and maintained once someone purchases the home and moves into one.  

The collateral is all you have left, and you must protect it.

I’m closing on a 2 unit in Bethlehem in August if all goes well.

My husband and I have 3 rentals all out of state that are managed by a PM.

Those all seem to be common pain points for owners.

I buy existing land contracts all the time but I wouldn't create one in any state.