When you charge under market rent, the IRS deems that you do not have a profit motive and, therefore, disallows all rental expenses. 

From a tax standpoint, there are additional disclosures to make when selling a business asset for less than fair market value to a related third party. 

It's an old metric that many do not use in today's markets.

Nonetheless, you can base the DSCR calculation on PadSplit rent (if there's a history of PadSplit income being produced) or short-mid-term market rent (an analysis done at the same time of appraisal).

I use Beyond pricing in my vacation rental markets and Pricelabs in my city/mid-term rental markets.

I’ve built relationships with brokers who specialize in Harlem, and one of them brought this off-market deal to my attention.

Excited to hear about your plans for 2025—let me know if you ever want to chat about the market or need any help finding deals!

@Philip AndersonWe release quarterly market updates on the rental market in Ventura. 

Business Growth: As I’m focusing on multifamily, industrial, and retail assets, any advice on how to position my company to stand out in a competitive market?

Personally, I wouldn’t invest in a market where appreciation averages only 2%.