I’m an investor in the college town Lawrence, Kansas and Currently I am living in a three bed two bath condominium with my wife and two babies.

Thanks guys for the feedback I'm still in the beginning stage i recently just purchase the property I'm currently in and just finished up a small renovation on the property and just trying to put together my next moves to start a passive income though real estate I'm looking at the options of a HELOC or cash out refi the property I'm in currently 3 bed 2 bathroom built in 2010 (ranch style)paid 122,000worth around 130,000good area, decent school district ,in a sub division 

Before you crawl into bed with anyone for any reason, find out about that person.

Two units of a three unit building, fully renovated with parking which are listed under 400k each, 3 bed, 1 bath.

Here's the quick overview of my numbers and projections with more detail in screenshots of my excel spreadsheets:Purchase Price:  $365,000Price Per Unit:  $60,833Two-Family:  $121,667Four-Family: $243,333Rehab Estimates:  $60,000 ($10K/unit) Estimated After Repair Value:  $575,000Loan:  90% LTV (of purchase price) @ 12% interest for 6 months with 2 points paid on exitProjected Cash-On-Cash Return:  29.35%Projected Internal Rate of Return:  51.02%Here's a picture of the current rent roll (two units were vacant) and my projection of the rent rollCurrent Rents:  (more details considering the numbers don't tell the whole story)Two-FamilyUnit 1 (2BR+):  VACANT - son-in-law lived here and moved out prior to closingUnit 2 (2BR):  VACANT - empty when I walked it... he was "finishing" itFour-FamilyUnit 1 (2BR):  $200/week H&HW included - one bedroom is painted entirely black, multiple windows are broken, and other weird things...Unit 2 (1BR):  $780/month H&HW included - only "normal" tenant in the buildingUnit 3 (Studio):  $150/week H&HW&E included - complete hoarder... floor to ceiling with junk except for a small path from his bed to the bathroom and the fridgeUnit 4 (Studio):  $155/week H&HW&E included - smokes in her apartment without a care in the world... had a lit cigarette while I was walking throughProjected Rents:Two-FamilyUnit 1 (2BR+):  $1,400/month (OWNER-OCCUPIED) nothing includedUnit 2 (2BR):  $1,200/month nothing includedFour-FamilyUnit 1 (2BR):  $1,200/month H&HW includedUnit 2 (1BR):  $1,100/month H&HW includedUnit 3 (Studio):  $1,000/mo H&HW&E includedUnit 4 (Studio):  $1,000/mo H&HW&E includedHere's how the numbers broke down for cash in and cash out:Actual and projected expenses for the properties (I was given a single sheet of paper with hand-written numbers). 

Purchase price: $15,000 Cash invested: $50,000 4 bed 2 bath single family home with 2900 sq ft of living space.

And alway compare apples to apples, a 3 bed 2 bath compared to similar.Second is the cost of the repairs.

So a typical 1 bed rental should accommodate 3 people.Read the lease if it has any specifics regarding this matter.

The difference is you don't keep a bed and roof at the gas station where your kids sleep after you buy gas for the first time.

Thank goodness too since the woman drove over the bed in the master bedroom!