If you want to buy a property, absolutely get a preapproval, a Real one.....where you have to submit tax returns, w-2's, bank statements, etc.You don't really know what ou can buy until you get one.  

While it has been relatively good in terms of rates of returns, the markets have been red hot and finding the same type of good cash flowing deals has been difficult for now. 

@Vincent PlantIt sounds like your cash flow is slightly less: consider setting aside 10% of the rent for repairs (paint, carpet, plumbing, etc.) and 10% for capital improvements (new roof, new HVAC).Consider paying any debt with high-interest rates (anything greater than your cash on cash return).Save the balance for your next deal.Good luck,

Typically I look for a businessman who has good income monthly but shows little income on their tax return because of tax write offs or someone who has great income but has bad credit that is "excusable". ie: Medical problems, previous job loss, auto accident, that kind of thing.

It also ends up costing quite a bit to maintain the LLC, and this hurts your returns on a lot of these smaller investments. 

Of course, it is very important to know that these people have a track record of success and know what they are doing, and most importantly that they show a conservative investment culture where they prioritize a solid, conservative, yet high yielding investment protected from downturns more than looking for non-protected, volatile investments with unrealistic high returns that whenever a correction comes, they are done.Let me know if you have any other questions, and I wish you a great investing journey!

.- Maximize our 401k contributions each year, and assuming 8% return each year, our 401k portfolio will grow to 1.6 million.- Result = 3.1 million asset + 2500 monthly passive income• Plan B = Plan A + Home Equity Investment- Buy one Multi Family rental property in year 1 ($250,000), and pay off this rental property in 5 years.- With more Home Equity available, I can buy 3 more rental properties in year 6.- Pay off my existing Seattle rental property in year 10.- With house price appreciation, I can buy additional 3 more properties in year 10.- Total Income: Seattle property 2500 + CT rental properties 7*1100=7700 = 10200 - Result = 3.35 million Asset + 10,200 Monthly passive incomePlan C = Plan A + BRRRR:- Buy one Multi Family house a year using BRRRR Strategy. ($250,000)- Repeat this process 10 times in 10 years, then I could have 10 houses in 10 years.- The advantage of this strategy is that I can use my $250,000 LOC over and over.- The disadvantage of this strategy not able to find appropriate deal or not able to refinance.

What kind of returns can you get on the different scenarios? 

Craigslist can sometimes identify these but the level of effort for return is pretty unbalanced.

Any new lender will require a copy of your tax returns and it will still show there.