By potentially halving heating costs for tenants, I anticipate fostering more extended tenancy periods, thus reducing turnover rates and driving up ROI.Drawing upon the expertise of renowned professionals like Michael Maines, Emily Mottram, Joe Lstiburek, and Allison A.

Not to mention, I find it much easier to negotiate contingencies, extended settlements to sort out zoning or other items and even settle with permits in hand with MLS listed properties which is undervalued by most but can greatly reduce your transactional costs and open the door to better financing options. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

They both are low income and have a hard time making ends meet (paying me).

Fannie Mae does have a loophole (taken directly from the Fannie Mae Selling Guide:"In order for non-mortgage and mortgage debt to be excluded from the debt-to-income (DTI) ratio, the other party has to pay the complete monthly obligation every month for a minimum of 12 months (and the other party cannot be an interested party for non-mortgage debt).

Taxes $1200/yrNet Income: 2022 = $6,274 (before depreciation); Gross $51k; 62% occupancy2023 = $5,236 (before depreciation); Gross $45k; 57% occupancy2024 has seen so far, a decline in bookings.

With a duplex, you're building equity while getting some rental income.

Planning, such as selling in a year with lower overall income or using a 1031 exchange, can help minimize this tax.

One applicant has a 530 score but seems to have a stable job with 3X income.

We did not need help in deciding what our investment niche would be; we needed help in creating and implementing a tax strategy plan for a married couple composed of a high-income earner and a real estate agent and business owner.