The property breaks even with the first mortgage, and I used the funds from the 2nd for other investments, so can't count that against this property.I think break-even would be about two years.  

From what I've seen most new agents are told they need to get business from cold calling and ads (I'm not knocking ads, or even cold calling, but the majority of agents in actual real life are not going to cold call no matter what - count me in that group), and at the same time they don't focus nearly enough on cultivating the sales and referrals that can come from their sphere - people who already know, like and trust you, or would if they had a chance to get to know you and your level of expertise a bit better.If this helps at all, I started out with virtually no sphere (I knew 12 people in my working area when I started in real estate) and also virtually no knowledge of actual real estate.

I can count on one hand how many of the 220 plus homes I bought rehabbed and sold from 2000 to 2008 that did not use minimum down or no money down and or paid cash.now as I have morphed more into new construction and build at 250 homes in the last 6 years or so.. almost 1 in 11 o12 is being sold for cash. most are conventional.. 

If you can qualify for the mortgage amount without "counting" the rental income, you will be over that limit.

However the bank we approached had no interest in counting the potential rental income for our existing property toward the DTI calculation when we applied and were rejected for the loan.  

for all I know they could be watching macro numbers and lump your property in with other properties in your general area.But if you have the helocs.. pull out that 25 page Deed of trust or Mortgage you signed and read every line.. our answer will be there.

I agree with other Saffas on this thread, making a profit is difficult with all the macro factors going on.

Based on that, what properties can you qualify for, run numbers, and project methods of repayment or profit sharing on that.If an investor is giving you a loan for a down payment, that will count against your debt to income ratio.

It's easier for them to decide to sell if given 3 specific options versus one 30,000 foot macro level view of seller financing while I (Andrew Rivera) buy your property.If you're looking for some reading material this weekend, here is my post about the entire deal:https://www.biggerpockets.com/forums/223/topics/646426-how-i-bought-a-seller-financed-4plex-in-las-vegas-part-3

If you count on $70/month, that should be good enough to get you the proper insurance on a property in that price range.