(50% LTV low enough to where if it doesn't cash flow, who cares, lender can take a property at twice the value of the loan)..Theres other sub-1 DSCR situations that make sense at least in reality (vs. not in paper), but this is generally the way to make these deals make sense in this context (high value no cash flow markets like CA)

That all sounds fine and dandy but from my experience with purchasing my first home, the bank wanted to a paper trail of where every single cent came from-- I did FHA 3.5%.

NOPE denied.. 1st comment - congrats on the overall success2nd comment - this must have been long time ago, when they insisted on paper.

Also, know that small rental properties may look good on paper, but you still have big expenses that pop up and can kill cash flow for years.

My landlord sent me a paper saying I’m behind $1,110 and a text threatening me eviction if I didn’t pay it in full.  

The city is having quite a few issues and as a transplanted native of 30+ years, when I go back to visit I'm shocked and saddened by the downturn the greatest city in the world has taken.Lastly, we can paper-project what our cash flow, appreciation, and interest rates will be, but all we can know is what's happening right now. 

On paper it was supposed to cash flow.

Ask your rehabber where he gets materials, try to find some lumber yards and suppliers, not lowes of HD as they have credit departments.Set up a line of credit with suppliers and by the paper at the time of sale.

On paper this reading of the reg is unenforceable but if you have a neighbor problem & the city comes after you using this post hoc application of an old law having nothing to do with STR - someone eventually has to pony up the cash to fight the city. 

They look great on paper but the reality is often quite different.