The price of the property, and what the bank will finance, will be based on the income the property produces, the Net Operating Income (Gross revenue minus expenses) divided my the Cap rate.

The income/ purchase price ratio is just to high from what I see.

However, I like having two streams of income at all times. 

I understand the qualification criteria for REPS but have a slightly unique situation that I haven't found any answers for by searching...99% of my income is from my insurance agency that I solely own.

We dont guarantee perfections and will have oversights just like any other human.

Businesses will allow food trucks to operate on their property for 10% of the income made during that time.  

There are conventional loans with 5% down as well which when your value increases or 60 months pass the mortgage insurance can be dropped.Student loans even if deferred are part of your debt to income ratio but the income from the rents on 1 or 2 extra units can offset.

If you are setting aside a rental income for future capital expenditure, then the cash reserve are taxed as rental income when you earned it.

If your modified adjusted gross income (MAGI) is below $100k, the passive activity loss rules may allow you to deduct up to $25,000 in passive losses.

looking in Kauai, Maui etc areas with str restrictions,  leaning towards ltr. but with high rent and low income for local residents,  is it easy to rent ltr/find good tanents and have cash flow or atleast break even ?