Hi @Jamie Parker I was looking for passive income and the property was newly renovated so it seem easier to acquire with little to no work needed for tenants to move in immediately. 

Online Rent Payment (please tell me you still don't collect rent in person).

Here's my situation:Debts$127K loan @ 16.99% for an investment property rehab - $1963/months fixed$50K Heloc against primary obtained when rates were low and has since adjusted to market (high) rate $36K (three business credit cards at diff rates, lowest at 22% apr)IncomeMortgage 1 income after expenses (primary carrying the heloc -) - $600/monthMortgage 2 income (also primary) - $ 162/month ( not enough equity in this to sell right away ($70k) but area is growing like crazy)Mortgage 3 income (investment) - $720/monthMortgage 4 income (this is the property the127k loan was taken against) - $856/month - This is the one i am considering selling.

Because if all you have is insurance and someone gets a really good lawyer, they can max out all your insurance and then go after properties, income, etc.

I'm consider buying a property in South Denver to use as a MTR but am struggling to determine the appropriate monthly income in my underwriting.

I have questions: was the padsplit net income worth the time management and effort?

If a tenant is regularly late on payments, there is a very high probability that they will eventually stop paying or violate the lease in other ways that cost you far more than the late fees you see as "extra income."

For example, if its an income generating property (since you mentioned its an investment property) - then wouldn't they be able to use the income from the property to *atleast* be able to qualify to mortgage the remaining 25%? 

It looks like you are an experienced investor that has a good source of income, but numbers by themselves don't answer the primary considerations.Are you looking to grow income, grow appreciation or perhaps grow tax benefits? 

Just closed on a 3/2 with about 18% NET income per year.