I can only think of reasons not to: capital gains tax, loan interest rate less than the property’s cash flow, risk… The only way I could make it work would be to identify a buyer I know will default.

The rates and home prices make it very difficult to not have negative cash flow.

I see a lot of marginal deals (12-18% project IRR) being marketed by less experienced syndicators and I am worried that their passive investors will likely lose money as cap rates start to decompress (and cap rates will decompress - it's just a matter of time).

Also worth noting...I don't know that I'd say DSCR rates are insane.

One thing to take into consideration is.. if you buy the property with an LLC your interest rates will be higher. 

Once we determine the rental value, we aim for a monthly payment to the seller at approximately 50% of the market rate.

The rate is the same or slightly higher but comes with a $9K discount per house.

Very high interest rates, Easy times to find deals with conventional loans and hard times and recently the housing bubble / crash.  

Love the time in the market piece because you'll hear so many people who have never bought investment real estate ask why "you're buying when rates are so high" etc. 

So I could satisfy the mortgage company that it is a second home for the superior rates by exceeding 14 days, while still satisfying the IRS that it is an investment property.Are you guys getting investment loans or second home loans for your AirBNBs?