You could convert them to a DSCR loan but then transfer them to a LLCWhat we have done is save for down payments and renovation costs, - buy properties that need work rehab them and then refinance them out making sure it meets our dti.

This keeps your cost basis and deferred gains intact while offering liquidity and flexibility—you can sell shares gradually to spread out taxes and still receive passive cash flow, often exceeding current rental yields.A pure DST strategy can also work for passive income, but as you noted, not all DSTs are created equal.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Insurance-  replacement costs.  

It is always valuable to be able to walk into a property an analyze cost to repair, it is a huge factor in determining the feasability.

More work, more time but you can take advantage of a nice cost segregation / bonus depreciationThis is the truth! 

That is part of the cost of investing.  

i'm just making numbers up, but if your rent on a property is $1000 and your all-in cost is $1500, and you're negative $500 a month forever, that doesn't make sense, even if you can afford to cover the $500 with cash from another income source.i also agree with not using up all your cash, but that just means you might need to wait and save up more cash. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Most PM software allows late fees to be charged.Ours allows us to absorb the cost of tenants paying electronically thru the software - it usually wants to charge tenants, but we want them to pay electronically.We manually charge tenants a Processing Fee for mailing in their rent, a slightly lower Processing Fee for depositing to our bank.Your success will depend on the Class of your tenants.