It is very important that you solidify comparable sales in the area to justify the higher value and request a reconsideration of value if this is possible with your lender. 

Hi Michelle, I would check on the rules started by another poster about rules changed for appraisers and basement bedrooms.

Mold remediation can be expensive, but it may not be big enough to justify an insurance claim.

I was on a Senate Steering committee way back in 85 on how to deal with all the platted antiquated lots in CA. there are millions lots created before the modern rules and these lots exist today but many are not buildable and are traded back and forth from tax sale buyers to retail buyers who dont realize their 5k lot in CA is non buildable.So there was a big conference in FT.

If you're dealing with an early 1900s home this should be a serious consideration in addition to the above.For the rest of the scope, the same rule applies.

They have a ~15 page PDF that describes the rules. 

But when you can qualify and deal with the process before then - usually worth it to do bank options like this until you hit the scaling point (could be 3 rentals could be 5, could be 10 etc - no real "hard and fast rule") 

Generally there is consensus that DSCR Lenders can only offer a 1% prepayment penalty for up to 3 years in MI, but some lenders have recently reportedly been flaunting this rule - I would just tread carefully here in this area, generally not advisable to get potentially tangled up in a flawed legal doc with a non-sophisticated or fly by night lender

While it doesn't meet the 1% rule it's in a stable, desirable area that'll perform more consistently for you over time so it's worth the tradeoff in my opinion.

That property has tenants which would cover the monthly payments at its current rent which is well below market value but the property would need love to justify an increase in rent.Very grateful to have made this much progress in the span of less than a year and a half and currently just trying to make sure I have all of my ducks in a row to ensure I can build these three properties into a stable few investments.Looking forward to the future,Austin