I'm new to real-estate investing and I'm trying to understand the difference between the different forms of investingI want to play this RE game for the long-term and have the portfolio benefit from appreciation, depreciation, tax-free cashing-out, leverage using low interest rates, cashflow to cover the expenses.Here's my understanding of eachDirect RE- Full ownership / control of when to sell- Can leverage & deleverage as you want- Work involved to maintain property; But can hire a property manager to assist- Can provide cashflow to cover expenses + CoC return- Provides hard collateral / security for the money you put in- Tax benefits - depreciation, phantom appreciation, interest deduction Majority Partnership- Form partnership where you are majority owner with 2+ other people (with more capital input) - Can provide benefits of direct RE on controlSyndication- Passive investor / accredited - Less work- Access to commercial RE which you can't get otherwise- No security / collateral for your stake; Can loose everything- No different from investing in a business- Already leveraged returns; You don't control how asset is structured- Depreciation benefit passed through K1; But no benefit of 1031Crowdfunding- Low minimums- Already leveraged returns- Can be equity or debt based; Equity stake has some tax benefits through K1- No security / collateral and everything can disappear without recourseIs this correct? 

Better to build your own equity through the debt paydown, enjoy the tax benefits of ownership, and garner the equity of an appreciating asset.

Dti takes the total of all your monthly debt pmts divided your total monthly income.

Do not go into any debt unless it creates positive cash flow. 

@Matthew Silva, That's awfully nice rent for the debt you have. 

Can somebody who is not self employed, has a lot of equity, excellent credit, no debt and 30 thousand in savings but can only prove very little income because the majority of their income comes from tips, do a cash out refinance?

When I called the bank to get pre-qualified they told me that we are able, but are very close to being denied because of our debt to income ratio.

If you are also on the loan with the realtor, they will pull your credit and count your debts against all the income showing between both of you.

I have worked in lending as well as debt restructuring since 2005, originally starting in the Mortgage industry before the crash. 

They should be willing to go to a max. debt ratio of 56.9% and can underwrite down to a 580 credit score.