If so, one downside is turnover - you would likely have different tenants every year.  

That’s no different than buying a 12 cap property to make a lot of money.

Hi Devin, Thanks for the quick response what is the difference in How many more points and what rate % higher are you seeing on 80/20 vs 75/25 here in CT.

I do land, which is basically the same as SFR flips with a few differences. 

They're splitting the county into a few different zones.

capital gain and passive activity is very different you can't offset each other.see to make this PAL stuff to be make sense you need to combine it with 2 years tax-free first 500k primary buy/sell, 1031 , syndication and development/flipping activity.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

@Andy OshodiRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

Are you open to different markets considering you travel a lot or are you looking to stay in socal for your first investment?

Divide these costs by the difference between market rent and the rent the tenants want to pay.