Now let's assume an all-in basis of 75% LTV in a “C” or “D” neighborhood and be able to complete a BRRRR thanks to the cash flows impact on the 1.2-1.25 DSCR (depending on the lender's parameters), but may have an all in lower basis of 70% on a “A” or “B” home where there is a greater barrier of entry and other positive attributes but fail to complete a BRRRR because the cash flow does not allow you to meet the 1.2-1.25 DSCR.

In the example you were using, there would be a $100,000 that was attributed to the building itself as 27 and a half years if it’s residential, 39 years if it’s commercial, and in this case commercial means like an office building or a strip mall or something like that.

This is attributed to a couple reasons.

To Elliot’s point I screened her just like any other tenant and I attributed that to the good experience. 

I think it can be attributed to the relatively low popularity that note investing has.

If I were you I'd also look at finding houses or areas that can buck that trend or have some different attribute that make them special somehow.

Dependent on that towns future, many towns have completely died out as industry and commerce dried up.A safer investment would be a growing metropolitan area that has the attributes necessary to grow in the future.  

Bottom LineThere is a saying, I don’t know to whom to best attribute it: “Strong opinions, loosely held.”

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.

Now that we've used him for a deal, a couple attributes have been extremely beneficial.