This example is just to illustrate how to reach a simple goal working of $1,200 a month in a high tax and purchase price area.A for the hard money rates, 9% is available from the lenders I work with.

Even if I was in your situation, it makes absolutely no sense financially and I will illustrate this with a simple calculation.I don't know your age but I assume you are between 20 and 80, so 50 on average.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350Insurance = $100Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250Insurance = $100Association Dues = $25Total PITIA = $1875Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23Lender terms and fees vary widely. 

A residential rental activity is a poor example to illustrate this concept since rental expenses are deducted from rental income and whatever is left over is taxed, regardless of whether there is a business entity in place.

Ignore the wisdom of others at your own detriment.It really all comes down to a point made by Daniel Khaneman in Thinking: Fast and Slow regarding two sets of norms:Market NormsRelational NormsA good illustration would be this:  if you ask a neighbor to help you move a couch they'll probably help with gladness. 

My attempt was to illustrate that a trust offers no advantages for the distribution of dividends to minor children,

@Roselynn LewisWhile good service is essential to the success in most businesses - as Nicolas and Michael illustrated - most money is made/lost at purchase.  

I am liking the areas between and around San Antonio and Austin TX.Pulling off a sub-to acquisition is on my bucket list--it just seems like such an interesting maneuver.I'm taking a free sales pitch (I mean class) from Tarek El Moussa's Homeschooled, which is actually quite good--it's a lot of the same points from the podcasts and books here, but it's illustrated well and shows a comprehensive high level picture of what a "Residential Redevelopment Company" looks like at an established scale.

if you lay a whole life illustration alongside an IUL illustration given the same exact inputs, you will find that the cash value accumulation is relatively equal, except for any slight difference in expenses between the two companies.

I think what you are illustrating is that most of these rules of thumb $100/door, 1% rule, 2% rule are just that rules of thumb.