How do people make portfolio loans work on SFRs?

[Gary Dezoysa]

I'm running the numbers on an 80k example house in an Ohio market. 20% down works with a 4% rate at 30 year amortization. Switching to 7% at 25 years the numbers go bad. 

Here's an example: 80k house, $800 rent, 54k mortgage, 6.8% rate, 25 year term. COCR 1% and DSCR of 1.06 means the financing converts it to a non-opportunity:

Am I missing something guys? I haven't even included points into the above. Seems impossible to make commercial loans work on SFRs even in cash flow markets. Yet others post here that they're making it happen. My guess is:

1. They're coming with maybe 50% down

2. Or they get deals deeply under market

[Dave Poeppelmeier]

I agree, I think the expenses are way too high. I will tout the BP Calculators until the cows come home... 

Now this is Student Housing, so the returns are better (which is why I do it...) but this shows a much more specific breakdown than the 50% rule. This is also a commercial loan, 4.45% 20 yr amortization, 10 yr note with 5 yr ARM. If you can still get a 30 yr fixed from a bank in your name then go for it, but otherwise it can be done with Commercial loans on SFHs.