@Upen Patel is correct of course regarding the LLC, so I would encourage you to ask him specific lending questions. 

Vacancy of 40% is very high other than that assuming your math is correct it doesn't look like a terrible deal.

Hello Sam,Assuming that I am reading this information correctly you are losing $17,943 after taking the depreciation out of the expenses. 

@Andrew Postell Thanks for the reply, Andrew.

Debt coverage ratio is only for commercial loans correct?  

@Mike McCarthy   You are correct in everything you are stating, but I believe the manufacturer is recommending only 8g wire because the kiln only draws a maximum of 33.6 amps. 

I was trying to reply to everyone at once but I’m having trouble through the app!

When the time for the Refi comes around on a 1-4 unit property, I was under the impression that the appraisal is not based on how much you have increased the rent during your hold but rather just the typical appraised values of other similar properties in the area (whether it be other 1-4 unit properties or single families in the area) and that the increasing of the rents while holding the property only comes into play when the asset is a 5+ unit property - is this correct?

Wayne is correct. 

And yes, that's another benefit of setting up the reverse correctly - The use of a single member single asset LLC allows us to transfer the membership of the LLC to the client instead of having to conduct another real estate closing.So the EAT would be an LLC that is holding the property after it's been completed and to finish your 1031 exchange you get the membership interest of the EAT that holds the property.