However, when dealing with residential lending (4 or fewer units) the bank is more concerned with your ability to repay where as commercial, 5+ units, looks more at the property's ability to generate income.  

http://www.biggerpockets.com/renewsblog/2014/09/30/14-effective-pages-for-a-fully-optimized-lead-generating-website/

He has really learned to automate his life as much as possible and generate a steady passive income.

I've generated 20%+ returns, composed of cash on cash of 10-12%, in all of the above markets. 

Selling it for that price would generate a profit but I think we could get more if we fixed it up first. 

The solution, in the short run, is to throw the baby out with the bath water, until which time an economic catalyst is generated by commercial interests, whether industry, technology or natural resources capitalists.

One year wouldn't be a big deal, remember too that you authorize them to pull returns, that authorization can stay active over the term of the loan.Depreciation is the nature of the tax beast, it is not a cash expense and is added back in, all business assets other than cash/liquid accounts depreciate under one schedule or another, furniture fixtures equipment or real estate.

I suppose though if you're generating cash flow from the rental and building equity in it too but still paying rent for your own living, it's still not a bad situation. 

How many really hot leads could you generate for $2,000?

My wife and I are focusing on this currently and have found that we can generate $800 cashflow on 250K investement with 20% down.