If the property was under insured that would expose you to cover some of the losses.

Closing real estate deals in any economy requires flexibility, adaptability, and a variety of strategic approaches. Here are several key strategies to help close deals, regardless of market conditions:
1. Understand ...

There is another factor that is your family so understand what is the impact there.

DSCR lenders tend to go with 1.0 DSCR from what I've seen (and don't even factor in maintenance, management, vacancy, etc. for some reason), but they also tend to be more expensive. 

However, the money needed to start real estate investing depends on several factors.

A lot to factor if the numbers actually make sense to do it.

The formula calculates the maximum amount to pay for a given property once two key factors—the after-repair value (ARV) and estimated repair costs (ERC)—are considered.The 70% Rule Further ExplainedThe 70% rule states that real estate investors shouldn’t pay more than 70% of the ARV minus the repairs needed.

If location isn't a big factor (does not seem to be based on original post) I would highly recommend looking into building a barndonium or shouse in an an area where you can get a tract of land fairly inexpensive and has little zoning regs and requirements.

@Jesse LeBlanc something seemed off, but yes we need to expose these scam "lenders" for sure.

@Chris SeveneyI agree the sponsor is the most important factor, but passive investors can not ignore what they are trying to accomplish, and have a deep understanding of the business.The trinity!