Also the starting point for most deal analysis.Does not include debt service, capital expenditures, or taxes.ROIReturn on InvestmentROI = (Ending Value − Starting Value) / Starting ValueUseful for understanding overall return relative to initial cash invested.Does not account for time value of money (TVM).

If cash flow and appreciation are main objectives, it sounds like maybe out of state investing is the way to go.

So it’s important to make sure your screening process is compliant with fair housing laws and is based on objective criteria like income (including voucher amount), rental history, credit, and references.There are pros and cons to working with voucher tenants:Pros:A portion of the rent is guaranteed by the housing authority, which can help with consistent cash flow.Many tenants stay long-term, which can reduce turnover.Considerations:The unit will need to pass an inspection, and you may need to wait for approval before move-in.Rent increases, lease changes, and eviction processes often involve additional steps and coordination with the housing agency.As others have mentioned, having a consistent screening process is key.

That means your rental-related expenses can generally be deducted this year, even without rental income yet.Those expenses will likely create a loss.

The tenants for Section 8 homes will likely be single mothers who lack a background in home repair and for them its about feeling safe, secure, and relatively comfortable.   

I’d like to stay within roughly a 2.5-hour drive.So far, I’ve been researching Rancho Cordova in the Sacramento area and it seems promising due to hospital density, government employers, and relatively affordable pricing compared to the Bay.

I’ll bet extra that the new shiny object is AI-related.   

At the same time, I’d love to see how I can support this community, whether that’s answering roofing-related questions, sharing field insights, or being a helpful resource.Looking forward to connecting, learning, and contributing!

I have invested in a variety of real estate-related funds over the years.

I’d start by talking with a lender to see the best way to access your equity, whether that’s a HELOC, cash-out refinance, or another option.From a tax perspective, if you do turn your home into a rental, you could deduct mortgage interest, property taxes, and rental-related expenses, take depreciation on the property, and deduct costs for repairs and improvements.If you decide to tap into your equity to buy a rental property, the key is that the interest is only deductible if the funds are used for investment purposes, like purchasing or improving a rental property.