Is this expected since interest rates are high and listing prices are subsequently dropping? 

Working with a private lender can indeed come with challenges, particularly regarding qualifications and funding structures.For your cosigner, they typically will need to be a member of your LLC and the private lender will want them to hold 51% - depending on lender of course.Compensating your cosigner fairly is based on what both parties believe is fair.

So the choice of tenant would be key.On the flip side, reasons to hold: a very low mortgage rate; probably not the case. 

I Can only realistically get $1600-$1700 a month renting my house based on the market.

A lot of investors who succeed in EC know the tenant base very well and a lot of them self manage.

Best bet is to try local and credit unions, possibly may have some programs for better rates.

In 2025 the bonus depreciation rate is 40%.This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.40% of $300K = $120K.You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.If your tax rate is 37%, you can defer $66.6K.This is a big deal even at the 40% bonus depreciation rate this year.

If you tell the IRS it is an expense, it is no longer income.W2 income does not use a 2 year average for your base pay! 

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

For Non-Admitted carriers, the important item to then pay attention to is the AM Best rating (or equivalent rating agency).