Your mortgage is 587, plus another 100 or so in PMI, for 687.You’ve then got vacancy at 8 percent, maintenance and capex at 10 percent (if everything is new) So that’s 297 plus taxes at say 100 a month and insurance at another 80-100.

I'd live in the other unit and still pay close to $600u/mon for utilities, taxes, insurance, repairs and capex.

Title searches, insurance, and other costs aren’t necessary on a HELOC, and that translates to less cost up front as well.In addition, lenders look favorably on those who use their current home to put a down payment on a second home.

As we plan for financial independence, and calculating our target financial goal, one big (unkown) piece of the puzzle is health insurance costs.

The assignment assigns the Mortgage to youThe allonge transfers the note to youAs for due diligence :Are the notes Dodd Frank CompliantHow much are you investing relative to the current unpaid balance (UPB0How much are you investing relative to the current Value of the propertyAre there unpaid taxes on the propertyAre there any unpaid liens on the propertyAre the borrowers currentHave the loans been professionally serviced so you know the pay history and the correct UPBDo the borrowers pay on timehow long have the buyers been in the property, do they pay on timeAre taxes and insurance escrowedIs there insurance naming the lender is there a lenders title policy

Also, call your insurance company and ask how many properties can be insured under one LLC.

You can have the most iron clad mortgage and personal guarantee but if you are lending to an investor who is not qualified or financially stable then you are rolling the dice.  

Rentals conducted as “net leases” (the lessee is responsible for all lease expenses, including taxes, insurance, rent, operating expenses, any mortgage interest/principal payments, etc.), however, generally do not qualify as a trade or business.If Non-recourse:No debt discharge income results from a foreclosure or deed-in-lieu transaction involving only nonrecourse debt.

Then how long will it take to get it stable?

Mid-$30k/unit  so with financing, insurance, etc CAP rate comes in around 9%.HOA has ~$30k reserves, roofs refreshed ~5 years ago.