Most DSCR programs will want you to have owned the property for more than 6 months to allow you to use appraised value instead of cost.

Trustworthy property managers can make or break a portfolio, and I’ve found that vetting them carefully—checking their reviews, local reputation, and how they handle tenant retention—is crucial.

I remember years ago our attorney reviewing one such issue for a client that was coming over to us. 

In your case of a fourplex, option 2 should get you a better deal.I would also agree with Bill on how the number of units may not correlate with the value of the property unless it is a large multifamily complex, and sometimes a fourplex or several single family houses would give you better returns. 100% We always recommend conventional first until you can no longer qualify for those. 

Hey Marcus welcome to the community, I work in the Kansas City area and could provide some value to your investing journey.

Think About Future Value & Target Demographics•Check the average income levels in the area.

I felt that it benifitted the community expanding the buyer pool and increased the value of all owner's property in that development both owner occupant and investor owners. 

Hard money then refi residential 30 yr How did you add value to the deal?

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

An approach that we use is to provide value to the homeowner - especially to distressed homeowners.