Questions about DSCR Loans

[Joshua Maffuccio]

Hello, first poster here!

I currently live in Southern California but am looking to dip my toes into real estate investing via purchasing a rental investment property in Kansas City (I have roots there, visit fairly often, have real estate connections there, etc.). I have a few questions related to DSCR loans that I'm not easily finding the answers to online so I thought I'd post some of them here to glean this community's insights. I understand that all answers come with qualifications and things need to be assessed on a case-by-case basis, but I appreciate your general advice!

1. Do you think it's best to work through a loan broker and if so, should I look for one that's local to the area I want to invest in? Note that  if this goes well, I would want to continue making deals there.

2. If I'm able to make a cash purchase, do you recommend stabilizing the property before seeking a DSCR loan i.e. is it better to use a DCR based on real rental income once the property is leased or based on a rent appraiser before leasing?

3. I'm confused about what exactly gets included in the operating expenses that are used in the DCR calculation - perhaps there's some variability? I know there are the obvious PITIA items but what about property management fees (I plan on using a property manager), maintenance/repair allowance, and vacancy allowance?

4. I understand that a DCR over 1 is expected (1.25 and above is best) but what if you're expecting that DCR to be say, .97 in year 1 but 1.05 in year 3, based on anticipating rental growth rates? Do DSCR lenders even look at projected DCRs or do they mostly just care about what they see at time of lending?

Thanks in advance!