So when the note is paid off via refinance, They receive principle repayment which is not taxable income correct?

Regarding lenders it depends on which routes you intend to go such as banks, private, HELOC, hard money, etc.

I think this is one of the better routes for sure.

If that’s off, even by a little, it can snowball over time and make things really messy and eventually cost you more money when you do decide to work with a CPA or if you sell down the road.One option you could try if you're not sure is having a CPA handle just that first year to get everything set up correctly (basis, depreciation schedules, categorizing repairs vs. improvements, etc.).

We have gone the trust route.  

Your FICO is what matters. 2) If/when we do flip it, our options are to do a 1031 exchange or take the hit on taxes if we take the money right out, correct?

Have you ever considered going down that route? 

There are a few routes first-time investors usually explore, like DSCR loans (based on rental income rather than personal income), fix & flip funding if you’re renovating, or even bridge loans if you need short-term flexibility.I just sent you a DM with a quick breakdown and some options to help you understand what might fit best for your first purchase.

If you’re not going to go at least semi-commercial it’s a hobby, a character builder, MAYBE it pays a well as a paper route for a kid.  . 

(Assumption: Refinancing all invested funds out is top priority) (Opportunity cost: finding another deal same price and slightly higher rehab but property is 250-350sq/ft more) If your numbers are correct, how could being $50k-$60k in the black be a bad thing?