Currently we are seeing STR owners posting for sale due to reduction in prices they can get per night and the vacancy rate increasing. 

I want them to see the total picture and then keep whittling down to where they get close to say a 5% error rate. 

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

There is no UBIT because your investment isn't leveraged with a mortgage or debt.

If we include investments in mortgage loans (trust deeds), real estate partnerships, REITs as well as direct property ownership, I’m at about 80%.  

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

And hopefully I can be financially independent by paying the mortgage down eventually.  

They originally wanted 360k, but the mortgage would have the property running negative for the foreseeable future until all renovations are done, which I won't do. 

There are some creative ways to get it from 37% to corporate tax rate of 21% but generally it's best to invest passively as the IRA is designed.