Hey BP,I’m working with an investor right now on a VA loan assumption here in the Phoenix metro area and wanted to share some insight because these deals are one of the best ways I’m seeing people win in today’s higher rate climate.

Since I know a lot of folks here invest in South Florida, thought I'd share the key findings:📊 Key Data:- Luxury inventory at 10.2 months (discounts averaging 10%)- Operating costs up significantly: Insurance +29%, Maintenance +24%- Cap rate spread: 4.7% (Brickell) vs 5.3% (Kendall/Doral)- Condo fees up 45% since SB 4-D passedFull report with neighborhood breakdowns: https://thsld.com/miami-property-management-trends-2026What are you seeing in your markets?

I’m seeing the same shift you’re talking about – a lot of BRRRR folks in Indy circling back to DSCR as their main exit, especially when they don’t want to deal with tax returns or they’ve already “used up” their conventional bandwidth.On terms, most of what I’m seeing right now is 75–80% LTV being the norm, with better pricing if you’re down in that 65–70% lane.

Quote from @Tracy Thielman: This depends on the loan and what the rate is on the property of course.

Figure 80% of that is building, so they get $160,000/27.5 ($5,818) deduction on their taxes, saving them MAYBE $1,630/yr at 28%tax rate).

Also are you looking for tax benefit for 2025 or 2026? 

NJ is great market for it,  my wife and I got to Fi leveraging house hacking strategy and I now I help new investors get on the fast track and avoid the "Stupid Tax" I had to pay. 

Your PM fee assumption is a bit low—expect a base rate around 10% plus additional fees that usually total another $350–$750 per year.Maintenance should be closer to 10% as well, especially in this asset class.Overall, I find it hard to imagine a true turnkey property in Indianapolis at $70k in 2026.

@Elmer Wayne Fisher,Switching from a long term rental to an STR can make sense for tax reasons, but you want to look at the full picture before making that move.From a tax standpoint, the benefit is real.

I will answer from a tax perspective.