Here's a bit more in detail about how rates are calculated for DSCR loans:1.

However, after running the numbers accounting for insurance, PMI, taxes, vacancy, capX, property manager, etc. the property is estimated -1.85% cash on cash return (-$600/mo) once I fully rent the property.

If you want, you can DM with the details of the project try to get an unbiased opinions, as I've done for many others or if you have any other questions. 

DM us if you'd like to discuss the Detroit market in more detail:)

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

@Allie McAlister thank you for the detailed response!

Just because Zillow estimates a lower value, doesn't mean people will offer lower than the list price.Also, be careful about the laws with the association and renters.

Thanks for sharing all of the details.

I ran some quick numbers and would estimate (assuming you have good credit) you could borrow around $415k-$420k, which includes funding 100% of the rehab costs.Have you calculated your expected profit based on selling after rehab and if you decide to keep long term? 

You should put money away for cap-x and repairs, but also look into detail on the builder's warranty.