I choose the tenant based on credit and rental history without any set ratios as the quality of applications varies from one neighborhood to the next.

RecapSell current home - buy new home - 1614.20/month out of our pocket - Rent current home - buy new home - 867.87/month out of our pocket There is obviously things that I have not thought of, and of course nothing is ever set in stone from a renting standpoint, but it just seems to good to be true that I can keep my current home with a lower downpayment on new home and our out of pocket mortgage on the new home is SO MUCH CHEAPER.  

Can you recommend a lawyer or attorney who can help in setting this up in CA ?

I'm looking for a CPA that can help me get the business structure set up so that I have the correct entities carrying the correct assets for taxes and protections.

There is no rule set in stone that real estate will always enjoy such a favored tax status.In fact since populism is increasing and most Americans don't receive these benefits, they are at risk more so than in the past.  

thanks to both of you.John, what advice could you offer regarding setting up your maid service?

Otherwise, i am setting up a meeting with a mortgage lender ASAP that was recommended to ma by another investor to see if she can finance a deal like this for purchase. 

Once you have a good and reliable set of contractors, you should be okay.

We're going to have to do some upgrades to the unit to get the next set of tenants so we're currently saving up to be able to do that before we stop renewing their lease.

Cannot imagine changing the names and setting up accounts (most with first timer fees) for students every year, or in some cases 8 months.