A 30 yr fixed 3.5% at 20% down on a 600k purchase is $2,900 principal and interest and 700 tax and insurance so thats not far off from 3k rent and maybe a tenant pays $1,500?...

One of my rentals doesn't quite make the 1% rule, but COC (counting principal pay down) is pushing 25%.

Then the BC portion closes minutes/hours later on the same day and pays transactional funding principal+fees+any closing costs.  

how do you calculate cap rates & CoC when mortgage principal would be on both properties?

Foreclosure when no one bids the amount you set as the opening bid (your principal balance plus expenses) is even more expensive.  

@Ruth RojoAs a license, you are prohibited from representing the other party in a transaction in which you are the principal.  

If your DTI is ok based on your primary residence and monthly expenses, and the new property cash flows with 75% of the market rent, it shouldn't increase your DTI.For the property you are trying to acquire, the formula is (market rental income * 75%) - Principal/Interest/Taxes/Insurance = Net Rental Income or Loss.  

Principal of $80,000 never changes.

Obviously, if they bought it with cash, it's paid off, but you'll want to be sure any principal mortgage debt has been PIF, to avoid the due on sale clause, if applicable.- How much did they pay for it? 

As a small time lender and risk adverse lender I follow the following principals: Only lend to investors.