But I'm trying to simplify this one cause its bigger and bigger seems to be more fun for me to look at. 311 7th St S - Herbshire Apartments48 Unit Apartment Building Offered at $3,224,327 at a 7% Cap Rate in Waite Park, MNFound on Loopnet. https://www.loopnet.com/Listing/311-7th-St-S-Waite-Park-MN/19090256/Looking at the proforma, Market rents= $384,961.00 (looks like they're based on market rents rather than their current rent roll maybe?)  

Simplified Example: you have a triplex; your monthly mortgage is $2,000; you occupy 1 unit; your other 2 units pay $1,000/mo each for a total of $2,000/mo.

but if you rent it for  $1000 per month you will have a taxable income of: $4600 =12000 (rent)- 7400 (expenses)this is very very simplified ....there are loads of other deductions and costs you can apply to the rented side, and actually come up with a loss and save taxes.  

Or am I over simplifying, i.e. not accounting for upgrades etc? 

I simplified the process, less questions.

Lease start/end tracking, rent tracking, automatic payment reminders and late fees, and a lease end move out process that simplifies a lot of the work related to security deposits and charges. 

That sure would simplify things though.

Please call Joe  or Jane at - phone number -.The rent questoin is just a simplified way to get a motivated seller to call you back who is open to a creative deal scenario.  

@Daniel Blau, It is tricky :)  But there's a couple ways to think about it that will simplify it in your mind. 

Wellllllll..........your post is a little simplified on the Dave Ramsey method.