*******************************************************************************This map, via Visual Capitalist's Pallavi Rao, shows the share of households in each state that reported receiving cash public assistance (also known as TANF, Temporary Assistance for Needy Families) or food assistance (also known as SNAP, Supplemental Nutrition Assistance Program) in 2023.Ranked: U.S.

When it’s finally time to adjust, the increase feels too aggressive for both parties.Rent bumps are essential to keeping things sustainable, even with great tenants.Insurance matters more than people think — “loss of income,” insured-to-value, and replacement cost coverage were big lessons for me.

Business Context:Need clean ownership structure for DSCR lending (debt service coverage ratio loan)Dad willing to cooperate but wants to minimize his tax burdenI want to avoid $1,400/year property tax increase if possibleBoth California residentsGoal: Transfer ownership for business purposes while minimizing total tax consequences for family.Any California tax professionals, CPAs, or experienced real estate investors dealt with similar Prop 19 situations?

@Mordechai Reiss I don't know but I can tell you the rate will depend on the loan to value and the debt coverage ratio. 

But like any investment, success comes down to knowing your numbers and avoiding common pitfalls.Let’s break it down.The Numbers That Matter MostWhen you’re analyzing a deal, here are the metrics that should guide your decision:Cash Flow: Your rental income should exceed all expenses, even after you factor in the unit you’ll live in.Cash-on-Cash Return: Aim for at least 8–10% return on your invested cash.DSCR (Debt Service Coverage Ratio): Anything above 1.2 means the property easily covers its mortgage.Price Per Door: Compare with similar multifamily units so you’re not overpaying.Cap Rate: The higher, the better—just make sure the risk and location make sense.These checkpoints act like your compass, helping you spot good deals and avoid bad ones.Quick Reference: Summary TableHere’s a handy table you can use when evaluating your first (or next) house hack:Metric/TopicWhat to Aim ForWhy It MattersCash FlowPositive after all expensesEnsures property isn’t draining your savingsCash-on-Cash Return8–10%+ in most marketsMeasures efficiency of your invested capitalDSCR1.2+ idealShows the property can comfortably cover debt paymentsEquity for Refi20%+Required for conventional refinance and to drop PMIAppraisal PrepWell-documented improvementsHelps justify a higher property value during refinanceBeginner Mistakes That Can Sink a DealEven great properties can turn into headaches if you overlook the basics.

Use buy-sell/deadlock clauses instead of letting a court force a sale.Insurance & Risk: Set minimum coverages (property, GL, umbrella).

The monthly midterm rental strategy (MTR) can be a great supplemental strategy for STR or vacation rentals to help reduce STR risk, increase occupancy and revenue.

Still has to meet your lot coverage ratios. 

Also if you have significant funds set aside in reserves you can use that to supplement your rent as well to make a deal debt-service. 

You can buy now only if the property supports about a 1.2 debt service coverage after honest reserves or you have a clear plan to hit that within 12 months.