If your opt-out percentage is too high then it may look suspicious to the carriers; ultimately, affecting your delivery rates.The goal is to keep you opt-out percentage low while maintaining compliance. 

Prices in relation to rent are too high to have the cushion that was available before. 

It was beneficial when I owned in high COLA and felt bullish about appreciation.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

I had hoped to offset it with my capital loss carryover and haven't planned for any expense documentation etc. can I make the case that I am not a dealer because this is my first time and also have a high w2 income relative to the LLC profit? 

Its proximity to campus, turnkey condition, and rental history make it particularly appealing to investors seeking high cash flow and low vacancy risks.

It doesn't help that interest rates are relatively high compared to the last few years and seem to be going up with the new inflation news and such. 

De Soto has high demand.

This website is a great starting point to find out what areas are like https://www.areavibes.com/It gives you a total livability score and from there you can narrow down you search. 

The fact remains that his approval numbers are as high as they ever were.