Within a couple of months I now own a property that the bank appraised for 90k over the price I bought it for.After taxes, insurance, and misc costs, I'm still making enough in rent to cover the mortgage with a couple of hundred left over.

To me it seems like a simple problem containing two factors; 1. the mortgage (including taxes insurance etc), 2. the rent.The only solution I can is to to make RENT greater than MORTGAGE.

ALWAYS assume you will have a 90% 30 year mortgage, just so you can compare apples-to-apples...and to that point:Taking the other extreme: Imagine that you have a house fully paid off, so that your only expenses are taxes, insurance, repairs, and property management.

PITI cost: 3700/mo. attorney fees, architect fees, title insurance: 7painting, cleaning, 1 new dishwasher, misc fees: 6-10holding costs for 2-4 mo: 7-14Staging, misc decorations: 2total cost: 676-688k.Now, I've toured lots of comparable units in the area.

If you pull some more equity out of your primary residence and can pay it down to an 80% LTV (if you have any left) and the rate should drop dramatically.With an 80% LTV you could get an interest rate around 6% and an I/O payment of about $760 plus taxes and insurance.

I'm just thinking out loud here.I'm assuming that as long as a sufficient percentage of the rent covers the mortgage, taxes and insurance, then this wouldn't hurt my chances of acquiring a second mortgage for the purchase of a property in Florida.

As a Sole P you lose some tax-free fringe benefits because you cannot participate in company-funded employee benefit plans like medical insurance and retirement plans.

I stand to save a lot , not only on interest, but also on fees, insurance, etc. that the mortgagor was charging the person from whom I bought the property.Thanks for any help.Mike MitchellLubbock, TXINCREASE CAPITAL

You're talking about multimillion dollar insurance companies that do title searches all day long.

If taxes and insurance were the only operating expenses, that would be true.