If you go for a pool table you are going to want to get something really good quality or count on replacing it often because unless you get something with a real slate top the cheaper tables will be worn out quickly. 

.$5500 income Minus $550 (10% for property management that coordinated cleaners, some maintenance, restocking, communicating with guests which I took over eventually because I was much better / more invested in it.)Minus $300 for bills (water elec cable / internet gas)Minus $100-150 for each clean Remember you have a 5 bedroom house and your 15 guests just spilled beer all over the place, dirtied the **** out of the kitchen and all the bathrooms, tracked dirt in the house, and maybe smoked weed inside And you have to strip all the beds and sheets and everything and remake everything / restock everythingThat’s a 3+ hour job for at least 2 cleanersNow you can find cleaners that are cheaper, but will they do a half *** job and hurt your ratings (this is common in volume Airbnb businesses), be able to show up consistently and on off times (Friday at 11 am and then also Sunday at 11 am).

Much cheaper and easier to get them serviced 2x a year vs replacement.Sounds like the LVP is a cheap version.

I've shown before in another real life post, it was cheaper for them to sell and pay the tax, than most any other option, even if they were still going to invest in real estate.Good luck.

So the resident gets the internet cheaper than they could on their own and the property profits for offering that to its residents.

So the question is will the houses be $18k cheaper or will it go straight to builder’s bottom line?

A DBA would be a cheaper option.

I priced your scenario out as a DSCR loan at 75% LTV with excellent credit and am very close to what you posted, slightly cheaper cost in points.

Don't your same beliefs apply to the cheaper or smaller houses too?

Needless to say, your acquisition cost will be cheaper.