It's a business and if you have a good value proposition and there is some demand you can make strong cash flow.

Partners had it financed How did you add value to the deal?

Building in Long Island means finding affordable land, which should be very slim.If you want to do value add for house hacking, your first try should be on an existing two-family that is not in great shape that you can learn to renovate.

The property required $62,000 in renovations, presenting a clear opportunity to add value.

First, determine what your lender offers in terms of Loan-to-Cost (LTC) for acquisitions and the maximum Loan-to-Value (LTV) for a seasoned cash-out refinance.

Property Details: SFH 6 beds 2 Bath 2016 sqft - Rented by the room.Purchase: 340,000Amount Financed: 272,000Down Payment: 20% (68,000)Purchase Costs: 12,777Loan Type: 30 yearInterest Rate: 8.75%Rents: 3,300**********************Investment Returns - Year 1Cap Rate (purchase) 8%Cap Rate (Market Value) 7.1%COC 1.8%Return on Equity 1.3%Return on Investment 25.1%Internal Rate of Return 25.1%

Just plan to keep expenses on a spreadsheet.  6) We got an umbrella insurance policy vs LLC - lots of forum threads on here about the differences and which one is best depending on situation.  7) An emergency fund is paying yourself, I don't sleep well whenever mine gets low.  8) For me, it would depend on your financial level, time to retirement, and/or if you have income you need to offset or not. 9) you need to figure out if selling with the up-to- $250,000 capital gains tax free for primary residence is better financially for you than renting as you'd be converting to a rental and potentially losing that tax advantage (takes a lot of monthly rents to equal that benefit), and talk to your accountant about the depreciation as I think they still value it as depreciated when you sell even if you forget to depreciate at tax time.   

The one I used was the University of Michigan Credit Union.The loan to value is lower on investment property but if you have a strong equity position it makes sense.Then, the blended rate between your HELOC and primary loan is still better than the rate on a cash out refinance.Plus, the HELOC is flexible and can be used over and over if you pay it down and you have no payments until you use it.Dry powder waiting for the right opportunity.To Your Success!

The tenant has been reliable and has a track record of paying rent on time, and he is also motivated to find a buyer so that he doesn't have to move.Cash Flow Calculations: Estimated property value = $590k.

They will sell your holdings if they fall in value below a certain value.