On a house with a lot of distance between heater and furthest hot water source, the pumps do not work and using a single heater can take minutes to get hot.  

Maybe some price appreciation on property would occur and I'd have depreciation to offset rental income and such.

Plus, I was not receiving interest income for about 3 years of the 5 year note. 

When you know where to look for these properties and how to source a buyer for almost any deal, it becomes kind of a fun game. 

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.

QuickBooksQuickBooks can be a good option for tracking the financial aspects of your deals, such as downpayment, funding sources, mortgage details, and cash flow.Pros:Widely used, with robust reporting features.Can track both income and expenses, making it easier to manage the financial health of your properties.Offers integrations with banks and lending institutions for easier transaction tracking.Cons:There might be a learning curve if you're not familiar with accounting software.May require customization or additional apps to track all the specific real estate details you mentioned.3.

It doesn't matter if not on your mortgage credit report, it shows on your income taxes.