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).

It also sounds like this is a newer venture for you so unless you have a key partner with experience banks will also factor that into their loans. 

You could then get more sophisticated and factor in refinances after 5-10 years and how that money could be re-invested into acquiring extra units. 

It is actually another conversion factor which can be used in your ads and adds both a connection option and “eye real estate”Conclusion:The Google Ads game is already highly competitive in today’s market and requires an investment of several thousand dollars per month to see serious traction.

These factors cause a bit of anxiety and have led to this whole re-evaluation.

Depreciation will continue to provide tax savings for years to come, of course.Appreciation isn't cash earnings, of course, until the property is sold, but it does factor into the overall wealth building opportunity in real estate investing.

There's just too many factors that can go wrong with these types of deals if you're overleveraged from the jump.And, sometimes we want these deals to work so badly that we fudge some of the numbers during our underwriting process to show some "cash flow" just so we can get into the deal.

And of course factoring in insurance and taxes.

Research markets, consider factors like job growth, population trends, and property prices.

@Nicholas Foy average sales price in The Eye was $87,944 in 2023.We consider it a Class C- Nieghborhood.So, tenants will probably have FICO scores under 580.Means you may want to use a Vacancy/Tenant nonPerformance factor of 20%+ in your metricsYou'll also need a real good team on the ground to minimize losses.