In this case, since the capital stack includes 70% debt, it's likely that some portion of the income generated by the preferred equity investment could be attributable to UDFI, potentially triggering UBIT.However, the preferred equity in your scenario may be treated differently from common equity, especially since there is no upside participation beyond the fixed return.

I know in my tiny village three business owners recently received grants $100K (think they match) for outsideimprovements (windows, parking, roofing, patio)  Must be nice; that's what I want! 

In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K The seller wants $60K to sell us the OPTION.

maybe as an MTR... not sure Mid term work in recreation areas.. ours in Vegas is very successful and I think other bigger cities.. our tenants are usually insurance burn outs  IE house burned insurance is paying while their home is fixed.. 

(both loans assume 15yr fixed) That gives a positive cash flow of 350/mo. much better. 

Quote from @Jackie Liu: Hello BP member, I'm currently doing my due diligence on a potential prospect, during my search of the prospect's current residence I'm finding some information that does not match what was on the application.

Hi Zach, I have a property in Sulphur, OK that I’m looking to fix and flip, residential neighborhood, but I’m running into issues with obtaining a DSCR loan due to “rural”.

In order to fix that, the answer is more.

When i adjust my total investment cost to match that of the BP calc($167800) my COCROI and my multi year ROI match it perfectly which gives me some confidence in my calc.These are the rest of my number for this example.

There might be some things worth fixing but I certainly wouldn't spend thousands to do it.