Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

.- Small notes section to elaborate on property calculations, such as noting the calculation was based on a loan assumption or short term real estate strategy - Ability to edit name of calculation to something other than the address.

Also to OP, I am trying to help you answering this question using AI, here's 5 scenarios with assumption of loan of 500k with rate of 7%:-------------------------40Y 10YARM:Key DetailsLoan Amount: $500,000Loan Term: 40 yearsMortgage Type: 10-year Adjustable-Rate Mortgage (10YARM)Initial Interest Rate: 7% (for the first 10 years)The $2,918 monthly payment is based on the initial 7% interest rate during the first 10 years of the loan.------------------------------------30Y 10YARM:For a $500,000 loan with a 30-year 10/1 adjustable-rate mortgage (ARM) and an initial interest rate of 7% for the first 10 years, the monthly mortgage payment would be approximately $3,326-----------------------------------------------------40Y IO:For a $500,000 loan with a 40-year interest-only period, the monthly mortgage payment would depend on the interest rate.

Sellers are still wanting "too much" as they typically think their deals should still be trading in the 4-5% cap rate range.While I won't pretend to have a crystal ball, I generally think: a) if you want to get a deal today, you are going to need to be more aggressive then you probably are comfortable with in your assumptions.  

I haven't found any guidance from the IRS that says that Schedule E can or can't be used for rental income from a property you don't own, but the Schedule E instructions and related guidance all seems to be based on the assumption that you own the property. 

All any of the respondents on this forum can do is make some very big assumptions based on the limited information you provided.  

My assumption is we can trust everything in the SEC filings. 

So few starting investors do.First I would urge you to sanity-test ALL your assumptions (like "10% reserve for vacancy, PM, and Capex" and "5% for repairs") by speaking with experienced investors in your market with similar properties.

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

The LLC question was Bill's assumption, I didn't bring that LLC structure in my initial posting because I didn't want to complicate things...but you both are right, it is part of the question (although not from, or not only from the 1031 exchange perspective): what is the best structure to hold these properties?