The way I typically see an u/w look at this income is as follows:$5,000 in monthly salary$500 car payment $1,000 house paymentBusiness that loses $6,000/year$5,000 * 12 = $60,000 - $6,000 loss for $54,000 in annual income or $4,500/month$1,500/$4,500 33% dtiDoing the other way you would end up with $5,000/month income $2,000/month liabilities$2,000/$5,000 = 40% dtiHope that helps.

Graduating commission, start at 50/50, annual cost 1800.Free education, I'm taking their classes now.

But when you consider the greater length of service, ease and cost of maintenance, and safety, its a great product for a long term hold, mid to high end property.

He gets the same income from the property and no longer has to deal with any of the responsibilities of maintenance.

Thats not coming close to covering their holding costs when you factor in the maintenance costs and risk of things being stolen.Deed restrictions would be an easy fix for HUD though if this is really something they want to avoid.

One recently sold for $170k.The place is fairly new and fairly well-kept, but the rent I get is $1,200 and the HOA dues are $330, meaning my cap rate is like 3-4% annually.

We have worked all the numbers and we will have a positive annual cash flow of $20,092 (which I have read is good.)

Experienced investors will set aside 50% of the gross income to cover expenses such as vacancy, taxes, insurance, maintenance etc.

Apparently the previous owner had an agreement with the tenant that the tenant would take care of all maintenance and purchases, which is why her rent was so low.

I might not be brave enough to try that for a flip, but I would love to do that for my personal residence.It's a great looking floor but high maintenance.