Investments in real estate can either be considered effectively connected income(ECI) or Fixed, Determinable, Annual, Periodic(FDAP) based on the elections made for foreign investors.

That would be the best way to get cash to buy real estate, while the total stock market continues to yield an average annual return of 30-50% with zero effort.

. @6%= $2,760 per monthTotal income $33,600 per year                      -      $8,400 (I figure -25% for management, vacancies & repairs)                      -    $33,120 annual payment                      -     $3,300  for taxes                     -      $ ??       

And, a best case based on what I hope will happen (which includes 3% market-based appreciation and 3% annual market-based rent increases).  

Adding is an excise tax affidavit and annual gift limits. 

For well qualified borrowers there are some very favorable financing terms available..for example a client recently secured a turn-key Triplex that should return at least $15-20k NET annually with a TOTAL of $50k down payment.

You do not want to be dependant on SS having to approve your annual rent increase

There are still many opportunities to generate 12% annualized returns in 1st lien positions.

I am learning this the hard way right now, even though the ANNUAL HOA fee is only $300.00.

And the loan constant is the principal and interest required to cover the debt service annually, so it only applies to a positive cash flow???