. $40k seems excessive for this type of project.

For short-term rentals, the same would likely apply, assuming you offer what others don't AND you have a reliable way of screening for animals that cause excess trouble/mess OR pet owners who are not responsible.

Can anyone tell me if carryover basis restarts at 27.5 years in a 1031x, or is it excess basis at 27.5 and carryover picking up where it left off?

However, I'd advise steering clear of Harris County, particularly in Houston, due to the excessively high taxes.

In a state that a lender can get a deficiancy judgement if the deal goes through foreclosure the client can get their credit trashed and end up with a big fat judgement against them.. ( state specific).the reason your probably getting buyers that want to do this is because of all the online notoriety currently like Pace Morby who is huge in the space and the legions of students and followers and then to a lesser extent there is BP's own Sub to Guys..

Anthony F. at Fund&Grow made the credit approval process a breeze.

The hard money lender has tons of experience with lots of flippers in your market and if they approve the loan you'll know there's enough fat in the deal for them to be repaid. 

I spent many years in the insurance business and have never heard of a policy application for an excess, or umbrella, policy to be denied because of a claim, especially a property damage claim.

But it is the excessive side fees that I can never get full monthly rent.

It needs to be intrinsic for a DSCR loan to qualify, or they penalize you with an excess add on fee and/or rate. .Secondly, an IO really only make sense if you're investing in a short-term duration.