The IRS partially validated it by saying it is taxable, but they also tax illegal earnings.

If there’s no lease, the appraiser will determine the rent to calculate the DSCR.  

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

I'm using the BRRR calculator to analyze a few opportunities. 

Use tools like the BiggerPockets House Hacking Calculator to analyze deals, get pre-approved for a mortgage, and begin with a manageable property to build your experience.Good luck!

We plan to be as thorough and detailed in our research and due diligence when calculating ARV and rehab costs.

This way you can calculate how much you can realistically invest and keep for reserves.

My guess is that it won’t actually take you a lot more time, just the extra fees, but those should be accounted for in your profit calculations 

Someone I know bought a ranch to use as a short term rental property in 2021 for $1.7 million.Engineers did a virtual site visit, they were able to assign a value of $347,000 to either 5-7-15 year assets that were eligible for depreciation.In 2021, the bonus depreciation amount that you could take was 100%.This means that the owner could immediately deduct the full amount of eligible property in the year it was placed in service, rather than depreciating it over time.With that in mind, he took the full $347K deduction in his FIRST YEAR of ownership to offset taxable income from rentals.This was roughly ~20% of his purchase price.It was a big win for him.In 2024, the bonus depreciation rate is 60% so the calculation would be different.That said, you can still save and defer a ton.

I like the BIGGERPOCKETS calculators for running numbers on these types of deals.