But what you did accomplish is that now you owe $800 per year to your greedy state of CA, even though the LLC is formed in another state.

Nowadays we can't even imagine "no closets!"

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 = $350, Insurance = $100, Association 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 = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Even if you go "vertical", that tends to require an architect as well. 

In fact, even with my extensive experience, I choose to have all my properties professionally managed.Here's why:Tenant Selection Is CriticalThe most valuable service a property manager provides is selecting reliable tenants.

Or even a paper calendar? 

Anywhere near Evens has gotten very expensive, so cash flow will be tougher.

Some have never even seen their property first hand.  

Given these numbers and his research, he believes it may either cash flow slightly or at least break even, which has made it a bit more difficult to find an end buyer. 

You can't even look at it.