When I increase my rate based on the 15.5% to cover what was once the guest fee (I also did the math and increased my rate by 18.34%), I am doing so on all of my fees (rate, cleaning, etc.), before I used to absorb the 3% because it wasn't that much on things like cleaning.  

Anyone have a simple way to calculate ROI for the first year for a rental property? In other words is this a good formula (cash on cash return % + 3% appreciation + 2% tax benefits + 2% amortization)? I don't know...T...

Run the math so you’re clear on cash flow after expenses, not just the purchase price.I’d also suggest checking rental demand in the neighborhood talk to local property managers, look at vacancy rates, and drive the area at different times of day.

The majority HELOC's on investment properties, including the sponsor of this forum, sell their loan into securitization pools into the secondary market.

I’d love to hear if you’re seeing potential where others see risk, or if I’m just being dangerously hopeful.What are CAP rates in secondary Texas markets these days? 

Your primary trade-off is now clear:Access Equity Now: Accept the $1,400/yr tax increase and the other tax consequences (like your dad's depreciation recapture bill) to get the DSCR loan now.Maximize Future Wealth: Leave the property in your dad's name, avoid the tax hike, and preserve the massive benefit of a stepped-up basis upon inheritance.The other tax questions (gift tax, depreciation, etc.) are important, but they are secondary to this fundamental Prop 19 reality.My immediate advice is to model whether the deal still makes financial sense with the higher property tax expense.

soils matter and can make or break a deal but you can always pivot to a secondary exit strategy Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

A typical securitization is around $100 million.Now consider the math: you could reach $100 million with 2,000 loans averaging $50,000 each, or with 400 loans averaging $250,000.

This deal, on the surface, is not something that I would buy unless you think that you can outperform that Rabbu estimate or if there is a secondary reason (ie high appreciation, waterfront property for personal use, etc.).

In my experience, the best notes often come from a mix of sources depending on your strategy:Direct from banks or lenders: Often the cleanest deals with clear documentation, but sometimes require more upfront networking.Brokers: They can package notes and provide access to deals you might not find on your own, though fees can apply.Secondary markets/online platforms: Good for smaller investors or those looking for volume, but you need to do your due diligence carefully.Personally, I combine these approaches, building strong relationships with a few banks and brokers while occasionally checking secondary markets for off-market opportunities.How about you do you have a preferred channel for sourcing high-quality notes?