@Charlie KrzysiakCondos in Dallas offer affordability, lower maintenance, and strong rental demand, making them a good investment for those looking to build equity and reduce living costs.

A conventional loan under an LLC provides liability protection and easier rental management but requires a higher down payment (20-25%) and stricter lending terms, which can reduce cash-on-cash returns.

Could that bite our REP in year 5 when a big pile of ordinary earnings income is realized (if they don’t 1031 and defer it)?

But what difference does it make if the leveraged portfolio earns an insufficient risk adjusted return?

A solid exit plan reduces the risk of default.Check Their Liquidity: Even experienced borrowers can run into trouble if they don’t have reserves to cover unexpected costs.

I did not care about the interest rate much because I am thinking banking is like a leech sucking up your hard earn money.

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

The Seller’s earnings are around $300,000 for the past 3 years.

Renovation costs are capitalized and added to the property’s basis, reducing taxable profit (sale price minus adjusted basis and selling expenses).

to me I view an inspection contingency as you do it and if something is wrong you present it to the seller and say "hey fix this, reduce the price OR if it was major and really bad just walk away".If no inspection was done, then its unethical but reality is its not worth a seller to sue over it.