Getting a DSCR of 1 in some of the higher tax counties of Georgia is tight, but we've been able to get through them.

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

They can sell tax free.

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.What I will do is provide practical and business guidance on tracking time.Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc.

I assume your prop tax increased 1.1% to 1.2% of the ADU cost even though the ADU only valued at $75k???

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

I then would have my tax cpa enter in or do it after discussing tax based items (depreciation- MACRS, reserves, year end accruals, reserves, etc.).

Also, how does one assess whether or not one can turn a profit after paying principal/interest, insurance, and taxes each month?

The high property taxes takes out most of the profits. 

Texas is very landlord-friendly and also does not have income taxes.