We have a Texas Series LLC and we can churn out stand-alone entities with one asset in it like sausages, and have them taxed whatever way makes the most sense.

These are pretty stable tenants with low churn.

For budgeting and reserves, I used 10%, and in servicing I was advancing payments then collecting, something much different than the average note investor.Loan diversification is important as well, you can follow bond theories that apply to notes.I'll say too that churning those notes purchased at a discount, refinanced at PAR quickly pushes your yield skyward and the tax issue is more irrelevant IMO, when your yield is 50% annually you can afford the taxes.As Dion suggested, it's a function of yield over time, don't forget time and the velocity of your money. 

Buying a business is a faster way for income but you'll need to factor in a bigger churn rate and be ready for some baggage.   

As far as lease up fees being an incentive to churn customers perhaps that's the case for dishonest managers but never so for professional managers.

Am I to rely on a realtor or appraiser willing to churn data the same way we as investor are?

During the normal course of turning over stones to churn up seller/listing opportunities, we come by interesting investor leads.

The only way I could possibly see it happening is if I had someone who was churning credit cards for miles.

@Jeffrey Hayes While a POF for more than the purchase price could churn the emotions of an individual seller and entice them to try to squeeze a bit more out of you, I doubt it'll have much of an effect on an institutional seller, since their sale is based on a process and data. 

This way I won't need to touch any new funds and keep churning old funds into new investments.