First, there are about 6 states that I refuse to invest in because of their tax laws and what I consider to be an unfriendly business environment.

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

If it wasn’t the insurance it would have been the property taxes.

For IRAs and HSAs, a financial institution trustee is an integral part of what the Tax Code defines as an IRA or HSA.

It should cash flow 400/month after taking taxes/HOA into account.

@Dalton Foote I have had tremendous success using direct mail and mailing the owner of record where the tax bills get mailed to.Generally, property management companies don’t pay the real estate taxes so this gets me right to the owner.Targeting wise, I would just do a zip code filtered by unit count using a service like listsource.  

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC (you can elect to have a LLC taxed, as a S Corporation which is a whole other conversation).If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

A HELOC on your duplex or home offers flexible, low-interest financing ideal for BRRRR, with potential tax-deductible interest if used for property expenses.

That's $1,600 per month plus to pay debt, plus at least $400 in taxes and insurance.

Taxes and insurance will be another $400+.