I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Purchase price: $90,000 Cash invested: $60,000 Buy and hold that I still have to this date.

The best option would likely be a construction loan, which can cover both the purchase of the land and the build.

Why do you think purchase contracts are so long and have such small print?

I recently purchased a property in Fulton County.

I have purchased my first home already!

Purchase price: $245,000 Cash invested: $80,000 I served as the buyer's agent acquiring this property.

You also will want to stick to on market properties at first because the purchase process and evaluation process (namely title and inspections) will be more defined.

Hi Troy congrats on your purchase, which it seems you purchased at a forelcousre auction.

Bonus depreciation recapture is based on the year that is placed into services.As of right now, the bonus depreciation for 2024 is 60%.It is not likely that they will change the bonus depreciation retroactively to 2024.If they change the bonus depreciation for properties purchased in 2025, it will have no impact on a property you placed into service in 2024.