To add additional context,  I would personally be more willing to sign my name onto a $6M mortgage collateralized against a $10M asset in an "A" market that has historically low vacancy rates, no deferred maintenance and is located in a stable market with a rent roll that covers the debt services and operating expenses with reasonable cushion for reserves than sign my name on a $90,000 loan collateralized against a $100K property in a C/D unstable market with high vacancy rates and where capex will disproportionately impact operations.

@Frankie PaternoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Whereas my other LTR rentals B,C,D,E etc, can accumulate/share deductions and losses , as well as carry over.

Quote from @David C.: I lent money to a flipper that bought from them. 

And there's a lot of opportunities on the west side in C neighborhoods like West Blvd, but they probably don't have as high rated of a school system being in Cleveland.  

LOL   yeah, if you see amortization table for pviate loan and higher rate commercial, 90% of the payment is going to lender anyway LOLI would rather pay off that quickly as well. but for something like C/D class duplex somewhere in indianapolis with 2 percent rate, I can hold the loan for 30 years lol

So, insurance premiums are getting VERY expensive.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

They way full doc programs work is they use this worksheet: https://content.enactmi.com/documents/calculators/Form1038.C...This approach will allow you to add back the paper loss of depreciation, and add back mortgage interest, property taxes, insurance and any HOA dues. 

I target C+ class hoods that seem to have tenants that stay much longer so my turnovers are almost zero.

Even looking back at the C/D section 8 type properties I owned at the start of my investment journey 10 years ago, those tenants weren't sophisticated enough to find me anyway even if I gave them a reason to (which I didn't).