Detail should not be extreme, but adequate to illustrate accurately the nature and amounts of expenses.

So, I stand by my response to the original poster's question about what he should do in a situation such as was illustrated in his example.

Chris,Here is an example which may better illustrate why UBIT is necessary and fair:Two coffee shops on opposite corners of the street.

@Roy N.Thanks for the illustration.

Michael - David's recent story and your account on this property are great illustrations of what is happening across the entire spectrum of real estate investing right now.

Rather than consummate deals, funds may be more likely to offer debt or preferred equity positions to allow owners to right-size their capital stack without giving up full ownership.Here are several graphs illustrating the current national commercial hospitality market in The United States of America:Full Commercial Hospitality Market Report Here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1183586/United_States-Hospitality-Capital_National-2024-01-15_compressed__1_.pdf 

Scott's original examples each began as all-cash and then became financed to illustrate the concept of negative leverage.

(Could share lots of stories to illustrate this.) 

Unpopular opinion, but this issue with ERP further illustrates the fact that investing in RE is not a hobby, but a business and caveat emptor always applies.

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 = $350Insurance = $100Association 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 = $250Insurance = $100Association Dues = $25Total PITIA = $1875Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23Lender terms and fees vary widely.