I just had an offer of $2M for my 22 unit that grosses $16k/month.

When you claim a deduction, it's because you spent money that decreased your gross income, thereby giving you a lower net income/protit/salary.The major exception is depreciation,which is a deduction that makes your income APPEAR to be lower, but doesn't actually impact your bottom line profit.

., can bring down the house of cards and ruin your credit for a long time.Personally, I've not wanted to put on any financing where the DCR is below 1.75 (50% of Gross Rent, minus P&I), or where the indicated monthly cash flow is less than $175/mth on SFRs.

I was able to buy a duplex in Lowell, MA with FHA financing for 245,000 and my gross rent from the side I do not occupy is $14,400.

As long as you have solid positive spread (ie. borrow at 5% to buy a house that will net you 10% after all expenses and reserves), then you should be seeking to maximize your borrowing.Just make sure that you have a strong ratio of gross rents-to-P&I of at least 3.0 (I like 3.50, personally), protecting your cash flow.

I am using that exact strategy in my market to buy rental properties that gross cashflow after debt service $500-700 per month.If you work with a freddie/fannie direct lender you can do this with no title seasoning and go up to 10 properties.

The first year I had it setup I had to also pay an LLC tax based on the gross revenue or sales prices of the properties I sold, not even the profit.

That rule of thumb says that for many properties over many years you expenses, capital, and vacancy will eat up about 50% of the gross market rents.

It is simply the total monthly payments, including the PITI payment of your new loan, divided by your gross monthly income.

I could share other gross habits of his, but maybe tell it at another time. ;-) We've never had a person before him with such poor cleaning habits.