If your market only keeps tenants for a single 12 month term with one month downtime between tenants, your vacancy is 8.33%.  5% implies that your tenants stay about 2 years before moving out, and each unit is down a little over a month between tenants.   25% vacancy would imply that you have one unit empty every day of the year.  

For example, if an investment, let’s say a property, has $100K of debt and has a total value of $150K (implying $50K of equity value), then the leverage ratio is $100K / $50K or 2:1.

Make sure you're practicing objections and your script/intake questions.That being said, its a numbers game as you implied.

Doing this would result in a negative balance, which would imply I have to amortize this as income (or deduct against interest expense) over the life of the loan.Any CPAs out there that know the "right" thing to do here?

I'm the market center tech trainer for the KWRBP office.

First let me say Landlord is not the correct word as that would imply a lease.

That implies as low as $2M. 

This implies finding comps that indicate a value.  

I would suggest you find the LO trainer, John Jackson, who is in TX and his LO/RTO education has the TX twists.   

McCall, Crump,  Bodeck and Jackson are the 4 main LO trainers.1/3 of my business is selling on LO/RTO intially for 1--2 yrs then either a note and mortgage or contract for deed.