This criteria is for 1-4 and 5-8 unit programs.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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I wasn't hating on you, I was illustrating the absurdity of Tom Smith's logic.

In all other situations, like the one you are mentioning, I believe alongside many others that it's a huge mistake to make a decision based on taxation.I'm taking an example that isn't real estate because it illustrates this point in such an obvious manner.

My goal is to own more than 15 units but I simply use that as an illustration for long term wealth building. 

The reason I am mentioning this is to illustrate that even new items can have issues.A broken closet door could be something as simple as the door falling of it's track.

My biggest interest is the house needs to be clean and safe even if it's older and the tenant is good tenant.You'll have good experience when buying good car from bad dealership and you'll get bad experience when buying bad car from good dealership, that's the illustration.

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 = 1.23The rent exceeds PITIA.DSCR lenders generally let you vest either individually or as an LLC.

Make sure the copy illustrates the problem you're solving and connects emotionally with your audience.

Improve cash flow (or potential cash flow)And it is this last one that is intriguing right now because it illustrates Warren Buffet's feelings about buying in a market. 

I’d just like to throw in that the way you keep records and run the company AFTER formation is just as important, if not more so, that the formation documents.The whole point is to illustrate through documentation that you and the company are separate entities under the law.