Vacancy and collection loss are very important in either a direct cap or DCF analyses. 

You need the insurance so as to create the Loss Payee clause protecting the HELOC.

Here’s Schedule E:Schedule EDepreciation (Line 18) – can be added BACKCasualty Loss/Amortization/One-Time Expenses/HOA Dues (line 19) – can be added BACKInsurance (line 9) – Added BackMortgage Interest (Line 12) – Added BackTaxes (Line 16) – Added BackAnd this is why owning property is such a great method of building wealth.

The length of time owning the home, along with the hours invested, which caused me to miss time on other properties makes me feel like this is actually a loss.

The various expenses for that 4 months have created a sizable disallowed passive loss.

For rentals correct me if I'm wrong, if you are even or experience a paper loss, filing state income taxes in Texas for your rentals would only help you.

Your profit will be treated as Capital Gains.But it will be Short Term Capital Gains instead of Long Term Capital Gains because you owned the property for less than one year and a day.You will report the transaction on Schedule D, Capital Gains and Losses, and not on Schedule C, Business Income, because buying and selling one house does not make you a dealer.That means that you will not be subject to Self Employment taxes.The tax rate that you will pay on Short Term Capital Gains will be the same as your ordinary income tax rate.I hope this helps.Good Luck.Michael Lantrip

So, expect a loss of at minimum $4k a month.  

How feasible is this to do while also working a full-time job?

Hey Team -A little bit of background here is that I currently have 4 rentals in Sacramento and 2 in Houston as well as completing flips but have now decided to venture into apartment complexes.Just had an offer accepted and am now trying to piece the process together as it's a bit different from what's needed from the SFR side.Some details about the purchase thus far:Purchase Price - $771,000Gross Current Rents - $8,400Potential Income - $10,200Here's what I'm asking for:Rent rollLeases for all units Profit and loss statement Operating income + expensesUtility billsMy thoughts process-wise:Receive/confirm the income + expensesConfirm condition via a property inspectionIf all checks out - complete the purchaseAside from some moral support from the BP team, my ask is if - at a high-level - I'm missing any other points?