DSCR Loans - Will Their Be Issues?

[Chris Seveney]

I am seeing a lot of posts in BP regarding DSCR loans, many based on newer investors not being able to qualify for more conventional loans.

The number I see starts to give me pause as when we have a market downturn and vacancies increase and expenses continue to rise, these properties could go Cashflow negative and I question whether a lot of newer investors have the capital to stick with a negative cash flowing property.

Not trying to scare anyone or say omg it’s a tidal wave of defaults, but has that given anyone else pause ?