@Archie BarrettJust wanted to say that there are MANY reasons to consider a DSCR loan vs a conventional loan, not ONLY if you do not qualify for a conventional loan due to DTI.Possible DSCR Benefits:Can do cash out refi prior to 1 year seasoning of the mortgageCan do cash out refi with no seasoning of ownership (with some lenders)Can do a loan with much less paperwork (this comes more into play every time you add a property)Can close on a DSCR loan directly in your LLCCan have your DSCR loan not report on credit (depending on the lender)DSCR loans can be cheaper than conventional loans for many credit scores and down payments.

It had been a bit and the fire marshal went in to that property (prior to it closing) and made a list. 

@Pat Arneson I agree with Mitch, to provide protection and trust from your PML, you need to have his/her funds go to the title company and in escrow prior to closing (instead of coming into your bank account).

In the Great Recession, I saw large cabins selling for 25% of what they sold for just 2 years prior.  

Prior year losses.

@Sean Hoglund  Assuming the prior years tax value is lower than your purchase price as in your example, you want to file your ATI Exemption before Jan 31st following your closing date at your county's Assessors office. 

You didn't pay me to work the entire year, driving one town after another, putting up signs, making cold calls, networking, paying for local ads to make $2000 on each deal I netted prior to this $50K gem.

@Alexander F PollockYou may lose a tax benefit of a stepped up basis for capital gains purposes transerring interest away from her parents.Also consider conducting a judgment searches on all parties to the transaction to confirm there will be no title problems for would come up when the LLC sells in the future because you will not have title insurance to cover prior owner issues.

Then we also look at background checks, and criminal history, and request a prior rental reference.You should not charge for a pet that is considered a support or service animal.

Prior comment of getting 15% in these investments - honestly I don’t see it because of the burden of the overhead to deal with small dollar investors.We started our fund At $500 and quickly bumped it up to now it’s $5,000 because of the costs of dealing with these small dollar investors was to excessive.