Argh, mental note, don’t fix typos after posting if it catches your eye. It moves the posting to new.
Anyway, I’m surprised too at how much risk “investors” would take. I laughed at many tri-plex/4plex sales that my agent sent me.
Literally, you couldn’t cover even cover the interest on a 1-year ARM with great teaser rate, let alone allow any vacancy loss, property taxes, maintenance or management fees.
Maybe I’m old school, but if my monthly rents won’t cover my PITI, maintenance and fees, it’s a no go. The profit comes from rents > costs being “tax free” since depreciation wipes the “profit” out.
