I read the average person uses 17 gallons when taking a shower.    

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Unless you're averaging more than 125K a year for 2 years profit. 

I'm guessing you've already looked at your expenses and cut all of the extras.

CA is is an expensive market and having enough capital to enter can be daunting.  

This is definitely an expense I had not planned for.Christine

Quote from @John Underwood: Also insurance rates are cheaper in SC than FL.Heavy emphasis on this one, especially if you are doing any kind of BRRRR, not only will insurance be expensive, but might also be tricky to find as some providers have stopped servicing FL all together. 

If you know you can't or don't want to deal with people then factor in a property manager for expenses.

Sometimes people lower their average daily rate to reach high occupancy levels so I always watch out for that. 

Any additional expenses incurred in preparing the land for sale (such as adding driveways) would also be included in the cost basis.In summary, you would typically report the capital gain from the sale of each parcel in the year the sale occurred, based on the cost basis allocated to each parcel.