The good thing is you can make interest only payments until you refinance and payoff the original HML.How confident are you in the Rental Income?  

I have been thinking about getting into REI for a few years now and really anything to provide alternative income. 

In the future, we would like to get into multifamily to build up a passive income stream.

If I buy a rental for buy and hold and I pay all cash, do I need to deduct from my monthly income for vacancy.

Real Estate Investing has given me the opportunity to quit my day job, create passive income, and free a lot of my time back up to be able to do what I love.However, with each new "level" of success brings on new challenges and hurdles along with that stage of the business.I am curious to know: What is the #1 Struggle in Your Real Estate Business Today?

Income from a personal investment will be taxed in a year it is received.

I am under the assumption that you need a full 12 months of the income and expenses to accurately break down a deal to see if it is a good or bad one.

Hi Eric,If you are talking about your personal tax liability (at the federal level), the formula I use is: NOI-Total Debt Service= Cash Flow; Cash Flow+Principal Payments Added Back (on debt service)-Depreciation=Taxable Income/Loss. 

I know in our area even though its 3 to 5% cap rates its still positive cash flow not negative.. price points wont go up above rental income. at this point the market for rent has peaked and unless someone is going to owner occ  the values are pretty steady for small multi family and multi family.SFR's you cant look at in a cap rate scenario.. there is many times intrinsic owner occ values attached to those..

The required verifiable income for the rental is $3600 per month.