And as a % of total income it’s historically high.

The hope on this is to eventually use the income made off of the first rental to acquire another one, and so on. 

Quote from @Adrian Castillo: Nothing is a guarantee.

Hopefully you will have a starting salary in the form of a W2 income versus a 1099 income.

(You will need to declare the income you receive but can also write off any expenses and depreciation like normal.)What kind of tax benefits would we get as rental property owners.

They both are low income and have a hard time making ends meet (paying me).

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Fannie Mae does have a loophole (taken directly from the Fannie Mae Selling Guide:"In order for non-mortgage and mortgage debt to be excluded from the debt-to-income (DTI) ratio, the other party has to pay the complete monthly obligation every month for a minimum of 12 months (and the other party cannot be an interested party for non-mortgage debt).

Plus, I was not receiving interest income for about 3 years of the 5 year note. 

Taxes $1200/yrNet Income: 2022 = $6,274 (before depreciation); Gross $51k; 62% occupancy2023 = $5,236 (before depreciation); Gross $45k; 57% occupancy2024 has seen so far, a decline in bookings.