DSCR qualifies borrowers with rental income rather than personal income, so you don't need tax returns.

The borrower isn’t assuming the note - that requires lender approval - he’s purchasing the property subject to the note3.

I understand that you borrowed from VCF, but I'm curious if you talked to any local banks/credit unions to comparison shop and if they were competitive?

Borrower experience: Will you lend to newbies?

It's at that point the borrower doesn't have enough cash to do that, and the lender forecloses on the property.

FNMA does have limited allowances if the LLC is whole owned by the borrower. https://servicing-guide.fanniemae.com/svc/d1-4.1-02/allowabl...There's really only three reasons to put your SFR properties under an LLC:1) A DSCR lender requires it: just setup the LLC correctly.2) Anonymity: In Michigan, you can create an LLC with a Registered Agent and use their address to hide your ownership. - Have seen many investors create their own LLC and use their name & address:(- Only works if you put a property in LLC when you purchase.

@Son D. the borrower paid off the loan a few months ago. 

Why borrow against an investment property at a higher rate than you can against your primary?

Now that the previous owners have nothing to borrow against, . . . how do they do that?

This time though I will be ahead of the curve in terms of not having to borrow from the bank.