There will be no adjustment for the members basis so their tax burden may be artificially high.

This artificially inflates the pro forma because rent implies a stream of income forever and a note is not the same thing.

ELOC on investment properties are slightly hard to find but when I last looked (maybe 1.5 years ago) I found a few.I have purchased multiple properties at below 1% that cash flow at 20 or 25% down (i.e. without artificially making it cash flow by placing a lot of capital into it) using what many people would consider high cap expense numbers (I usually use $250/month for attach multi units standard rental size and $300/month for detached or SFR standard rental size: San Diego is expensive with expensive cap expense). 

So nightly rates are artificially inflated.One of my condos in Kauai is a "top 10" performing condo according to airdna.  85% of my rentals are from VRBO and I have zero idea how the stats on that listing are made but it's way off from reality.

You want the residual to be really really high, like to the point it's artificially high (because it's set by the bank). 

Equity only buys artificial cash flow at a very high cost  (10%) and will ultimately create negative cash flow turning a investment into a liability.

With construction costs being artificially low due the current labor surplus, lesser weight was given to the replacement cost approach, as follows:Method        Value          Weight          Weighted ValueComps          $100k         30%               $30kCost               $90k           10%               $9kIncome         $125k         60%              $75kMarket Value:                                      $114k"It is not uncommon to see only 2 of the 3 methods use (for example, comps and income for an existing property, or comps and cost on new construction).

@Jaret Lara, It would certainly decrease his basis and artificially increase his taxable gains. 

And stage with artificial flowers inside and out 

We bought ours for $555,000 in September 2019, have installed solar and battery ($30k) and new a/c and furnace (10k) as well as some landscaping upgrades (landscaping and artificial turf).