Rents rise.

I specialize in tax services for real estate investors and I'm located in Austin. 

build - rent - refinance - repeat or build to sell for a profit? 

I require proof of income 3 times rent and their statement that they have never had an eviction notice sent to them.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

The key is to ensure it will cash flow once you leave a year later with all the units rented.

Our strategy is to purchase a multi-family unit that would allow us to occupy one unit and rent out the remaining units on a long term basis. 

They refused to negotiate on the first months rent being waived.  

Does anyone have experience in Sheriff sales for properties located in DuPage County?

Find something you can live in and finance with low money down and can rent out the other sides, or rooms, and that you can also add value to.