You want to have positive NOI.Cap RateA real estate property's "cap" – or capitalization – rate, is used to calculate the value of income producing properties.

These loans will typically have a slightly higher interest rate but also will not be taking into consideration the number of loans you have or your DTI ratio as they are asset based and more looking at the property at hand to make sure that it will produce enough income to cover the mortgage and possibly expenses as well. 

For me, let’s say I make $50/hour at my W2, this is my main source of income and wealth generation, but my properties earn me an average of $20/hour based on hours that I put in.In this example, I’ll outsource the property Mgmt to a company, so i can focus my time on producing more income at my W2 and addl hours spent finding new deals or spending time on things I love.I am constantly thinking “leverage” as that helps maximize my efficiency rate.

I suggest you reach out to any of several good investor/Realtors in East TN who are also involved with local investment groups - @Derek Tellier and Whitney Nicely for example.

This implies not only will the higher LTV produces a higher return, but it is also extremely likely that the San Diego purchase will have a higher long term appreciation rate. 

@Whitney Hutten thanks!

. = -$200/mo• Rental income (conservative) = $3400Total income = -$200 (by these very conservative numbers) to +$400 with a more optimistic estimate.Summary: While the property may not be an income producing machine, I’m eliminating my monthly rent and putting equity into a home while breaking even or cash flowing.

Hey Robert, You're a wise young man to start early in real estate and invest your future high salary into income-producing assets!

I certainly agree with Nathan and Whitney. 

Working on a deal to take a parcel with a single family dwelling on it and converting it to 6 individual rentals, with a cool and unique vibe all centered around a central lawn / courtyard, a rear garden, and positive energy producing through abundant solar array and high efficiency fixtures, appliances, and strategies.