It’s also important to sit down (or have a virtual meeting) with your accountant on a quarterly basis to review your financials.Tax deductions are maximized.Ensure you’re getting proper tax planning done throughout the year, so you are minimizing taxes.

@Lane Mcdonald are you doing to tax returns currently?

There's certainly no right or wrong answer, and as you say, everyone has their own opinion, but generally I think you will find most people on this site having the opinion that such an involved structure may be overkill (of course, no one has a crystal ball either).California is generally more cumbersome than other states when it comes to taxes and filings.

Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

I am hoping to use a local credit union to get a better rate + pament terms.for capex/vacancy etc. what %tage of my monthly rent should I take into account?

The investor covers property insurance (around $600-$700/year) and property tax ($800-900/year).

Good news is rates are starting to trend down and property values are still growing.The cash out can serve two puposes it can help pay off some high interest credit cards and be used for a down payment. 

Hi Jose,DSCR 1-4 Unit M/F 85% LTV | 15% Down, Loan Amt<$1.5M, (Note 80% LTV | 20% Down is typical for most lenders)------------------------DSCR 5-8 Unit M/F 75% LTV | 25% Down, Loan Amt <$1.5M (Standard disclaimer, all the above are subject to credit and guidelines.)

Is there anything different in terms of STR tax loophole if I do STR by the rooms?

If so, would this still cause issue with the S-Corp tax rules?