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’s crucial to ensure that your cash reserves can cover not only the mortgage but also unexpected expenses during the remodel.The 30% housing rule is a helpful guideline to avoid overextending yourself, and ideally, you should be comfortable with your monthly housing costs even without rental income.

If this effort gains traction, it could fundamentally reshape the U.S. mortgage market, impacting financing options for real estate investors nationwide.The Role of Fannie Mae and Freddie Mac in Housing FinanceFannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs) that purchase mortgages from banks and lenders, package them into mortgage-backed securities (MBS), and sell them to investors.

Navy Federal Credit Union - they're great if you're able to be a member.  

LLC Partnership Tax FilingFor an LLC partnership:- The LLC itself doesn’t pay federal income tax.

You, the borrower, should know that the three major private/hard money loan requirements are credit score, reserves, and real estate experience.Just be aware of that.

You should retain a significant reserve to cover vacancies, unforeseen maintenance, etc.1.

Our avg monthly expenses with reserves is around $1500 (mortgage, taxes, insurance, utilities, reserves ect).  

I can be patient, but I like to take action quickly.If I were to save for a decade (reserves + downpayment + closing costs), would I have been better off acquiring out of state properties or essentially being a bit of a slum lord to scale my portfolio faster to build equity?

Net Sale - This is the contract price, minus the closing costs and commissions.Net sale - adjust cost basis = net gainOnce you figure out what your net gain is then you can subtract state and federal taxes from that figure.