ProForma Basement Reno Cap Rate: 9.8% These are pretty conservative numbers....during ideal rental season the property should gross ~$3,700/mo ($44,400 a year) at peak rents with $35,000 ($240,000 including financing) all in on my end.

It has been determined that for single family properties these costs will typically be 50% of the gross monthly rent but it is only a starting point when considering an investment.

Once you meet this two year tax return requirement, the underwriters will accept leases on new purchases towards your income ratios (75% of gross rent counted to accommodate expenses).

,You net on the spread; however, your income and expenses are the gross amounts.If you are investing through a partnership, S-Corp or C-corp:The interest you pay on the loan is an expense to your business.

We are at 0 profit at best, some years have been at a loss which helped cut our personal taxes.Want to purchase 2nd prop which after calculations will gross $300/month income.

So to answer the question about the ROI, you've got a bunch of other questions to answer:- What would your likely gross income be?

She has been at her current job for 4.5 years Grossing 2k per month She is going to be starting a new job in two weeks showing Gross 3200.

,That is precisely what I was referring to.If your adjusted gross income is below 100K you can deduct up to a 25k(special allowance) in expenses exceeding your income.If your adjusted gross income is above 100k (unless an exception applies).

DTI is calculated by dividing housing payment (PITI) by gross income.

My questions:Assume a sale price of $500,000 and a monthly rental income of $1,700 from the two businesses along with gross sales of approximately $7,000/monthly from the existing business.