I know the cash flow is weak, if not potentially negative, once insurance and taxes are included and that may immediately make it a bad deal for some investors.

This is an opportunity to confirm they have the expertise you need.

Tax rates are very high level, so you will want to adjust that as you pick a more specific location to model out.  

The idea is to get is much out as low of tax rate as possible.

The downsides are you’re paying taxes that will go away at their passing.

Additionally, for rate-term refinances, many DSCR lenders have no seasoning requirements at all.Easier qualification: DSCR lenders have much lighter qualification requirements than conventional or portfolio lenders, such as no DTI, income verification, or tax return hurdles that can slow down or disqualify loansFlexibility: While conventional and bank lenders are heavily regulated and follow standardized rules, DSCR lenders have much more flexibility and control over their guidelines.

The seller needs moving money, there are oftentimes an arrears that has to be paid on the loan, there are oftentimes HOA fees that are due, there are title costs, there are escrow costs, usually there is deferred maintenance, you have to make mortgage payments out of pocket until you get a renter in there, you have to pay utilities and taxes, and you need reserves in case it all doesn't go as planned.3.

For example, there is one poster here who's business offers a note fund set up as a c-corp rather than an LLC in order to offer dividends that are more tax friendly for IRA accounts (at least that is how I interpreted it).

Have you ever identified more than three replacement properties in a 1031 tax exchange?

A single-member LLC provides protection while allowing you to report business income on your personal taxes.