This was a non-warrantable condo with a rental desk, so it wasn't possible to get a mortgage on it with the purchase, hence using our HELOC on our primary to buy the home.

Also a couple other minor items with the plumbing, so once we get the report back, we will see if there is enough in there to warrant maybe asking the seller for a lower price.

If this is the case modify your offer as warranted, if you can pay cash.

Corporate/Special Warranty deed means seller is only warranting title during the time they owned it.

As Thomas S. pointed out, that (usually) warrants an increase in rent simply because 1 year has passed and rent should be adjusted because of this.

If so, the seller may need more than they're disclosing.Get some pictures because a picture is worth a thousand words.Once you've gathered enough of this information you can make a better determination whether or not this investment warrants moving forward.

For instance FHA will not lend on non-warrantable complexes.

I see a lot of deals on loopnet that would warrant better returns all over the country with a lower capital barrier to entry.

If you do go the DSCR route, just make sure you know whether or not your condo is warrantable or non-warrantable, as that plays a factor in the rate and eligibility of the asset for DSCR financing.

If the number of rentals exceed guidelines for warrantability then that can depress prices as it takes out the ability of buyers to use low downpayment options, ie fewer buyers.