great idea .. sadly as soon as it gets to Tom Wolfes desk it will be promptly vetoed .

Imagine if you put $1200 into a deal and got $100 back every month, that would be 100% return annually.

Purchase price: $385,000 Cash invested: $324,000 Single family home in very good residential zipcodeand in one of the best communityUpgraded the home by spending 60Know rents for 3050 = annual rent 36600annual taxes & insurance 14000net return 22600Cash on Cash return 6.975 %current market value 585,000 What made you interested in investing in this type of deal?

Mortgage $450 (5.5% rate, 80k mortgage, 30yr fixed)Taxes $167 ($2,000 annually is what I pay for my rentals in Florida)Insurance $80 ($1,000 annually again is what I pay)TOTAL Monthly Expense = $701TOTAL X2 = $1,402 If you can find a 100K house (that's appraised value is also 100k) that rents for $1,402 that's a big home run.

You have to work backward starting with the annual income you want to make. 

It seems like paying down your primary residence would net you a cash on cash return of around 12-15% annually (now this isn't infinite as eventually you will hit the 75-80% LTV you need for PMI to fall off by just continuing to pay your mortgage as is).

That’s a ROI of 8% annually to your investor which includes the cash flow.  

This is not even close to accurate for anything I have ever bought.The property I closed on Monday was 200 units for ~19mm with annual NOI for years 1-3 of nearly 1.3mm; 3x NOI = 3.9mm on a 19mm purchase.

You can get 30 year products (fixed or adjustable).For a MultiFamily they will take Annual Gross Rental income less annual operating expenses, property mgmt fee, taxes and insurance divided by annual debt service.

Our annual income is too high to get tax benefits from passive investments.