Underwriting items for DSCR loans include appraisal, credit report, liquidity verification, borrowing entity documents, landlord insurance verification, and whereapplicable lease, verification of rent and security deposit receipt, and property management agreement.DSCR lenders should never ask you for tax returns, W-2 income, pay stubs, or company financial statements.A good DSCR lender can fund your DSCR loan in under 30 days.Pro Number 2: Loan StructureDSCR loans are generally structured as thirty year term, fixed rate and fully amortizing, with LTV up to 80%.To increase cash flow and boost DSCR to qualify for a higher LTV, you can even structure with a five or ten year interest-only period where principal payments are made over the remaining portion of the 30 year term.Most DSCR lenders can fund your loan with DSCR as low as 1.0, though 1.1 is where you will find the best terms.A few DSCR lenders specialize in no and low seasoning cash out refi for rental property investors who use the BRRR strategy.Compare this to traditional banks which generally offer lower LTV, shorter term, higher DSCR requirement, and 6 months of seasoning.Pro Number 3: ReliabilityDSCR loans are a growing component of the multi trillion dollar institutional credit market.While DSCR loan origination volume is growing fast, it struggles to satisfy the demand from institutional investors such as insurance companies, pension funds and credit funds that buy DSCR loans.For this reason, as long as DSCR loan program guidelines for subject property and borrower are met, there is a very high probability that your loan will be fundedwithout delay.Compare this to banks which may subject you to months of underwriting before ultimately rejecting your loan application for reasons unrelated to your application.Con Number 1: Strict GuidelinesThe largest and healthiest part of the DSCR loan industry is 1 to 4 unit residential investment properties in non rural markets where the As Is value and the purchase price is one hundred thousand dollars or higher, and the guarantor's credit score is 680 or higher.If an element of your transaction does not fall within program guidelines, your loan will either be declined or require an exception which can cause delay.DSCR loan program guidelines are constantly evolving to adapt to the demands of borrowers and institutional investors, and to respond to market and risk.A good DSCR lender will knowledgeably and transparently communicate program guidelines, proactively communicate to identify potential issues, and set expectations in a clear and thoughtful manner.Con Number 2: ShenanigansThe DSCR loan industry is fast growing and loosely regulated, attracting loan brokers, private lenders and salesmen who are not knowledgable about program guidelines, not expert in structuring your loan to meet your specific goals, not capable of closing your loan in a timely manner, and not truthful or transparent about loan terms.Con Number 3: Higher interest ratesGiven the demand for DSCR loans from institutional credit investors, the credit spread or risk premium has decreased, making DSCR loan interest rates from the most competitive DSCR lenders nearly the same as bank loans and conventional investment property loans.We should include an asterisk on this con because it is not always true and may not be true in the future.

In my area the margins on flips are shrinking but the volume of would be flippers is increasing, this is simply because the overly optimistic investor isn't requiring an appropriate risk premium, this drives out a lot of the "smart money" and pushes them into more sophisticated, complex, and less inundated areas of RE in which margins are still suitably fat.The last thing ill mention is that a lot of the high debt/leverage people are on this thread defending their positions.  

One stop, two deals = quarter million dollar profit in under an hour.

Many real estate funds will also have a maximum investment amount, and some will be open ended.Real estate funds typically require a minimum investment period of one year or longer, although there are also "opportunity zone" real estate funds that allow for turnover in under two years.

If you're trying to salvage the carpets, you'll need to get them bone dry in under 24 hours to avoid mold--so,  it's a race against the clock to get them dry fast.

Drain tile (which is basically a black pipe with holes in it) should be installed around the outside of the foundation and go in under the basement floor to the sump.

For properties that I know will attract many investors, I explain wholesaling to seller at listing, that they are likely to be inundated if they don't limit it, and then have seller state in writing, up front, that I should not send them anything under a certain price or with certain terms like fully assignable.

They will inundate you with opportunities and I would study those deals and work the numbers how you see fit.

Their homes were just a little out of my price range, and I have heard from a few investors that appraisals often come in under purchase price and the investor is expected to pay the difference. 

They may come in under that but I haven't walked through with my contractor yet.