I did have over 200 section 8 houses as I drank the cool aid way back when .. but geesh now we just stick to A class and live with the 4 to 6% returns and no drama and no destroyed houses.. its more than just the tenants its also the neighborhoods were crime is real etc..

Hi @Savannah Holzer, I'd like to start with california and spread out to central if the CoC turns out with low returns.

The liability from the DSCR loans will still be calculated on your business tax returns.

As a single-member LLC, the IRS considers it a disregarded entity, meaning the income, expenses, and other tax-related items will still be reported on your personal tax return via Schedule E.

When using a Roth IRA, your Roth IRA is a tax-exempt entity, therefore, any depreciation deductions that pass through the LLC, can't be used on your personal tax return.

Are there specific areas or strategies where investors might be able to mitigate these carrying costs while still getting good returns?

I’ve looked all over Montana for that type of returns and never find it.

A pro forma is vitally important, to make sure your projected returns match your budget.  

Likely when you setup your multi member LLC it would've been required to file a partnership tax return.

Numbers are more doable in the Midwest where you can acquire units for a lower cash and might get 1% or more of return.