Historically markets go up and down.

Wayne,It's a condo in the historic district.

See an attorney as these are still new without much historical court action, but they should be treated the same as any LLC from what I've read.Yes, any LLC must have an operating agreement.Before jumping off trying to get in the corporate world, ensure you know real estate, you can have 10 people owning as tenants in common personally with a TIC agreement and liability concerns on a dwelling are probably less than driving you car.

Here the nat gas prices are less than they were 15 years ago and gas drill is at historic highs and there is a 100 year supply of nat gas just in PA.I had one house where the oil bill was $4,500 yr, switched to nat gas, heat bill went to $1,700.

Today's rate (6.5% average) is low in historical terms and could be here to stay for quite a few years.  2) if the rates do not fall soon, property values are likely to decline further. 

Builders have slowed down, MBS are at a historic high vs 10 years, if you substitute case shiller for owners equivalent rent; inflation is negative, and there are lots and lots of people who want to buy but are waiting to see what happens.

So even though landlords historically didn't need to in many situations, there are lots who are now issuing 1099s to show they're operating as a business. 

I suspect for an out of country investor, the 50% rule will be slightly close on SFH in San Diego (normally I believe it is conservative).Historically San Diego has appreciated great. 

I'm sure it's entirely based on how risky the lender views the property, but as someone who isn't (yet) plugged in to as much data, it would be useful to be able to look up a rough estimate.Stephanie: Thanks for clarifying the calculation and the historical trend.

The first generally will be the ones sailing the historically calm rising tides thinking they are way more skilled than lucky.