For income verification, I plan to obtain a copy of the employment contract.

According to the BiggerPockets forum discussions, here are some key steps for conducting due diligence when purchasing a self-storage facility:Analyze the financials thoroughly, including net operating income (NOI) and cap rates.

Let's talk about leveraging tax strategies to optimize your real estate investments.

The other part of the is the tax implication when computing ROI.  

I am very new to Tax deed investing in the CA US.

The market appreciates 3% per year.If you pay cash for one house and rent it for $1,500, after five years, you'll have earned $90,000 in rent income and gained $34,000 in appreciation.Or you can choose to finance four houses with $50,000 down on each.

The person does pay her back and she did report the interest income. 

Even if I bought 10 more Indy properties all my net rental income won't add up to my W2 income (after taxes). 

Their history of large rental income didn’t add anything to the value because you could buy the identical house across the street and do the same thing. 

The other thing to consider is the tax implications.