See example below: DSCR < 1 Principal + Interest = $1,700  Taxes = $350 Insurance = $100 Association Dues = $50  Total PITIA = $2200  Rent = $2000  DSCR = Rent/PITIA = 2000/2200 = 0.91  Since the DSCR is 0.91, we know the expenses are greater than the income of the property. 

We did not need help in deciding what our investment niche would be; we needed help in creating and implementing a tax strategy plan for a married couple composed of a high-income earner and a real estate agent and business owner.

Our plan is to hold long term (10+ years) and likely pay it off in 5-10 years to act as supplemental retirement income which we plan to get to with a couple more properties paid-off in Tulsa eventually.Would you pull the trigger on these two properties based on our goals?

Anyone can declare real estate losses against their active income if their income is under the AGI threshold but only someone whose PRIMARY profession is designated to be a real estate professional will be able to offset active income. 

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

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

My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth.

Yes can definitely get 100% financing of the construction no income no doc . 50% of the land cashout to cover closing costs 

My question:If I were to seller finance and then raise private capital for the rehab, how would I pay back the lender loan other than chewing through income from the rentals since I would already be paying the seller on the finance?

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.