Yes, there are rules that you must understand and follow, and most importantly, have a trusted advisor who can come for guidance.

@Chris Brall, it doesn't sound like you understand clearly what went wrong the first time around.

This is a difficult and aggressive strategy, and it means you'll spend much more time upfront finding the deal; this goes without mentioning the risk of doing this while managing a family life and a busy job.First step is understanding if that cash-out refi is even an option. 

From what I understand, St.

Overall, I just think it is of utmost impotence that although a deal may look good on paper, that you have an understanding of the city/ town.

I understand that I can deduct repairs and maintenance, though not improvements.  

and yes I now have a prescreening message for any tenant leads so they have a clear understanding of what i require and then ask them to do a prescreening phone call for an interview if they are really interested then they can fill ip the application form etc.  

HI James, I understand not wanting to share your "Honey-hole", but what is behind these numbers.If he invests half of his Capital that is $300,000.  4K net annualized is a 16% cash on cash return (very high).In addition to the 16% you can get $1,000,000 in appreciation over 5 years, that is $200,000 per yearIf he leveraged $300,000 at 4.5 to 1 he can buy $1,350,000 in total property value

You must also understand how to "run" and LLC in order to get any benefits from it should you be sued.

I've been considering purchasing properties in higher crime areas and want to understand the full picture.