Here's a bit more in detail about how rates are calculated for DSCR loans:1.

It would be like charging you for a full remodel property rather than a hovel, because its highest and best use would be a swanky modern house despite never having upgraded it.Ask 2 / Costs & Risk Involved: I need to calculate the impact of what a lot split would entail.

I am also looking for information regarding fee structures, and what item's that should be and should not be included in the management fee calculation. 

@Jean G.The reality is: it dependsIt’s a numbers game where you need to first determine: what yield do I want and what are the outcomes/ risks involved that could impact thatBuild yourself a financial calculator to understand this but also understand you need to know every process and how much it costs and how long it takes90% upb on a commercial property in a non judicial state with equity and default interest at 15% is a great deal but take that same asset in another state which also has long eviction laws and it could be awfulLastly bankruptcy could wipe out some of your lien depending on the type and how the loan was written.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

I realized that the best way to compare and contrast these properties is to calculate the ROI of each.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Before making your final decision, I'd suggest running the numbers both ways - calculate your tax liability versus the potential long-term impact of accepting those unfavorable terms you mentioned.

You can use tools like the BP deal calculators to then share these with the investors you meet at the meetups.

I didn't know the difference between a heating system and water heater, I didnt know how to screen deals, I didnt know how to calculate cash on cash. we all start somewhere.