A rental investor from Phoenix calls about a duplex she found for $420,000. The property needs $15,000 in repairs, and she expects monthly rent of $3,200 total from both units. Her loan officer asks about debt service coverage ratio...

A duplex in Phoenix looks perfect on paper. Market rent is $1,800 per side. Property taxes are $2,400 annually. Insurance runs $1,200. The purchase price is $340,000, and you plan to put 25% down. You run the numbers and see...