I own 32 properties myself and have bought and sold over 300, including a few apartment complexes.

Eliminate debt, establish a budget, and save.

Co-living isn’t just an alternative to traditional rentals—it’s a way to maximize cash flow, lower risk, and attract investors.To make this post more insightful, I’ve included graphs and visuals that break down the key benefits of co-living and why serious investors should be paying attention.1.

@Blaise Bevilacqua - I agree with the added expense items that others have called out including vacancy, repairs/maintenance, capex, unit turns, and low insurance.

There is no requirement for @John Gillick to replace debt with new debt. 

Quote from @Alec Barnes: Quote from @Drew Sygit: @Alec Barnes we use Debt-To-Income Ratio (DTI) instead of income = 3x rent.Reason?

Eliminate debt, establish a budget, and save.

We'll double check that wind is included in our policy, that's a good point.

Make sure you know the impact that adding an ADU will have on any rent control. 12) investors seldom include the land value in the overall ADU costs.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).