So the inspection just came back showing the following issues: - Mold in a few interior rooms- Evidence of rodents- Original roof requires repair, replacement and/or evaluation - there are active leaks in the attic - 7 out of 8 water heaters need replacing at any moment ($5600 total estimated)- 5 out of 8 A/C units need replacing at any moment ($25K total estimated)- A bunch of minor things need to be fixed, i.e.

Basically you are using the forced equity as the "down payment" on the new/replacement loan. 

So, sell the property and replace it with one that cash flows.

I went in and replaced the roof and windows while also doing a gut cosmetic rehab on one of the units.

For example, if you bought this replacement last month and are now selling, that could cause an issue because you didn't hold the property for long after the sale.

@Alex Cabej there is a big difference between MARKET VALUE and REPLACEMENT VALUE.

You're generally expecting to eat the cost for shampooing or replacing old carpets, freshly paint the walls, etc.

Considering that $1 of rental income replaces $1.25-1.45 of earned income, I bet this is about equal to what she's making every year.

New to REI but aggressively seeking to replace job income with passive income from rentals.

New to REI but aggressively seeking to replace job income with passive income from rentals.