I had just mastered the original deal analysis and was getting comfortable analyzing deals.  

Within a year we had 3 or 4 originators, 2 or 3 processors, and a full-time admin assistant. 

Ensure that the original purchase agreement allows for assignment.

We originally used an FHA loan with 3% down, took on MIP, and now have a $2,100/mo mortgage with $225 HOA/mo - so about break even on cash flow. 

Before you even address your original question.  

Originally posted by @Travis Hill:I am reading a lot about property classes and how, who, and where are they determined?

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

I originally wanted to buy into a vacation rental market but this last year has been crazy and we seemed to have been priced out.  

I reach out to the original borrower and ask them what’s going on.

This is more than enough to do PML's whether you originate or purchase from a broker is up to you.