If the property doesn't meet the DSCR or the value basedon the market cap rate, your down payment will increase to bring up the DSCR orclose the gap to cap-rate value.Challenges/Lessons Learned: Just becauseyou can buy a property with a CMHC insured loan doesn't mean it is a good deal.We've seen a lot of investors agree to pay too much for the properties, and getshocked with a big down payment and low cashflow due to the low DSCRrequirements.

Some states also require an annual license fee to own and operate an LLC so that could also cause a potential for increased costs there as well.I would consult with a real estate attorney to see if an LLC makes sense from a legal standpoint and advise your accountant as to your decision so the appropriate tax filings can be made. 

You obviously have not studied enough this asset class.By borrowing from it you can make your money work at two places at the same time, increasing your total return.

The reason people seek for distress properties, so that they can acquire the property at a low price and renovate the house aka "value add" so that they can increase the property's value and create sweat equity, then pulling the money out or cash out we call out so that investors can liquidate their money and reinvest on the next project @Albert Bui @Carlos Valencia

We are looking to increase our rental portfolio.

Wis Dells is a prime location for STRs to be eventually banned or very highly regulated given the large resorts with deep pockets and a lot of influence. 

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

If we rent quickly, we may increase rent for the next lease!

So if you're looking to increase passive cashflow you're probably looking in the wrong place. 

For example, could this potentially be a cash boom opportunity within the adjacent areas such as Kenosha and Mount Pleasant where one could buy low, sell high within a relatively short amount of time through appreciation, or would the presence of Microsoft increase cash flow in those areas?