In practice, the biggest drivers aren’t whether you get 20% vs 25% accelerated depreciation, it’s (1) land allocation, (2) how “component-heavy” the build is (newer, higher finishes, appliances, HVAC, electrical), and (3) whether you can actually use the losses via STR rules or REPS.

One per year and ideally some sort of value add component involved where you can build some equity with each of them over the first few years as well.

I would suggest more real estate investors would have a better chance as success if they had someone to help them keep the financial component of owning investment real estate organized.

DSCR loans take away the personal income component, which can make qualification easier.

That personal-use component is often overlooked but can be a major value-add. 

I suspect your insurance number is low. 35 to 45% all in costs is pretty common if you have 3rd party management. keep in mind cash flow on top of all cost is only one component of the investment and in my mind not always the most important unless your buying in an area that is depressed and you think values will be stagnate for basically the life of the investment then positive cash flow a very important factor. 

Underwrite conservatively so surprises don’t take you out.Minimal-rehab deals help, but they don’t erase age.Buying something functional is smart from Phoenix, but even “rent-ready” homes in these ZIPs may have 20–40-year-old components.

Taxes should be a key component of your deal analysis and your large investment strategy.

If both components are at the end of their useful life, both need to be replaced.

Two major cap ex events in a short period of time can put the 80% LTV $100K underwater whereas the 80% LTV $1M SFH can more easily absorb those same cap ex events because the major cap ex systems and building components do not cost 10X to replace.