. $4451 - $3900 = $541 rent lossPITI on new primary + 541) / monthly W2 income = DTI(Although in the real world this math is run per property... but the aggregate numbers would be the same.)The 75% rule applies to any property you've acquired recently (or put into rental use recently) such that it doesn't yet show up on your tax returns or was acquired midway through the year such that the info on your Schedule E wouldn't be representative of ongoing income and expenses).For a property that shows up on your prior year's tax filing, we analyze the Schedule E the math goes like this:Net Sch E income or loss + depreciation + amortization + HOA dues + mortgage interest + MI + homeowners insurance = net income(net income / 12) = monthly incomeMonthly income - PITI/HOA = rent income or lossThere's one more add-back that can go on the list above... if you've had unusual one-time expenses during the prior year (major renovations, disaster losses... pipe burst, flooding, fire) you can add those back.If the property was out of service for a period of time due to the above unusual expense, but has been re-rented, you can sometimes make a case for going back to the 75% rule.I should add that this goes for properties that show up on your personal tax return (whether titled to you or an LLC).

@Pavel Bennett There's more to it:  Walls and floors between units would need to be Fire-rated separations; usually two separate forms of egress (unobstructed access / exits leading outside); separate meters (utilities and water); separate kitchens, bathrooms, bedrooms; unique addresses...etc.  

Insurance companies also don't allow you to have a hot pot, it's a fire hazard.

Fire away any questions that you may have - happy to answer anything we can.Thanks!

Either fix/flip properties to get some instant equity to help pay these costs, or hold properties for much longer to allow appreciation/equity paydown to help you out.Next fire your realtor, if he tells you that could only sell your home for 180k, and then suggests putting in another 16k worth of remodeling and 4k in tree cutting and STILL thinks the home is worth 180k then that agent is an idiot and wasted 20k of your money for nothing.Yes the stock market may AVERAGE a decent return, but the economy isn't exactly average right now.  

One side was completely burned out by a kitchen fire, and the other side was occupied by hoarders so there wasn't much we could "check" anyway.   

WowYes, I'd fire on principal and notify my state DOL. 

So if you have a fire at the house, and it destroys all their stuff, then their insurance policy will kick in to compensate them for that stuff.  

A lot of the Gary police and fire guys eat there.

Hi BP Community,Would you buy a house that has significant fire damage?