This can put a significant strain on your finances and cash flowThey also often require a large down payment themselves and may have a strict repayment schedule that can be difficult to meet, especially if there are unforeseen circumstances or delays in renting the property or generating income from itIn addition, relying on this type of loan may expose you to higher financial stress and the possibility of default if you are unable to meet your loan obligationsThe final decision depends on your overall financial situation, risk tolerance, and your ability to manage the associated costs and obligations

No personal income or tax returns are required.

As a SFR investor for over 15 years I have been wrestling with this question in the past, because it feels like you should upgrade to "bigger".I know for sure that I would not enjoy the ownership experience that comes with a small 4F, because in Milwaukee that typically also means lower income tenants. 

This appears to be a 'transfer tax' instead of an income tax. 

Different DSCR lenders have different guidelines.More on DSCR loans: DSCR loans won't use your income to underwrite the loan. 

I think so many folks maybe are looking at these deals like its passive investing etc.

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

Reinvest profits, stay patient, and keep building toward replacing your income.

You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

Besides the obvious credit, background, and income verification.