In short it is the month;y gross rent divided by the price.

They won't have a problem with you using the HELOC for a down payment as long as you still meet the DTI requirements on your gross income.

A buyer should be qualified as to payment, taking take 32% of their gross income as a payment.

[Note: your scheduled rent is $2K/mth ($24K/yr), but you need to make a vacancy allowance of 5-10% pending on the area ... so I would use $22K/year as my gross revenue in this instance].Sorry for the long response ... but there is more homework here to qualify this property.

These generally include vacancies and maintenance/repairs.My preferred (and recommended) method is to leave the equivalent of two or three months' worth of gross rent in a reserve account that you never touch until you need to pay for repairs on your property or turn it over for a new tenants.Regardless of what method you choose, and to Brandon's point, my website presents the numbers both ways.Continued success!

I am conservative so I only ramp up to use about 20% of gross earnings each year max but often am lower.

you then receive a gross check, no taxes are taken out.

I go 60% costs of gross expected income for an offer.

For example, a $100,000 property with a 1% R/V ratio would gross $1000 in monthly rent.You can also find investment property in some markets with prices starting at $50,000 and rents from $600 to $800.Originally posted by Ricky Stafford:2.

What is your gross income?