I'm sure they are taking advantage of people.

I can buy a 2-4 unit with 20% down vs conventional can only buy a 2-4 INVESTMENT property with 25% down 4. there are options where DSCR loans dont repot to personal credit, helps in not having to show a bunch of paperwork or not one person in a partnership has to carry the debt5. way less paperwork to close on this loan type vs a conventional loan. we care about the income of the property you're buying and it's ability to service the debt of the property whether we use long term rents income, lease income, or air dna/bnb income.6. easily buy in partnerships, add people to your operating agreement, its as easy as that so bring partners into a deal. helps with scaling and raising capital or getting partners involved7. gift funds allowed to close on these as well, and like I said earlier, there's only a 10day seasoning period of funds with some lenders so that means you can literally have a private money lender deposit money into your account 11 days before closing, and you can use those funds to close!

This gives you a better opportunity to do STR or MTR and not bother yourself or the LTR tenant with more people coming in an out.3.

Many people are only making $50k or so on $800k-$1M properties. 

Hi Eric....STR can be tough in DFW area, but some people still doing well, while many are bailing, seeing if they can turn them to MTR or even LTR. 

The season of Bigger Pockets investors posting 10 nearly identical "Looking for a CPA" messages per day.Disclosure: I am one of those people you are looking for.

Also, why do you think so many people are advised to get an LLC when starting in RE investing? 

Knob and tube has more negatives than most people think, As a GC doing lots of remodels in a old beach town, we replaced a ton of these.

Before the income subject to UBIT is calculated you can depreciate and deduct expenses and losses on that portion of the income so generally it's not as bad as people think. 

I faced numerous hurdles and stressful moments, but I persevered and built a successful approach.To tackle this challenge, I recommend starting early by building relationships and seeking investors.