And verbatim from the Fannie Mae guide: For the purchase of newly constructed properties, if the borrower has a relationship or business affiliation (any ownership interest, or employment) with the builder...And that is the precise literal translation to what a non-arms length transaction would be.

@Jasmine Williams in theory this sounds great but in reality 500k equity after paying closing costs and taxes would be around 250k cash in hand, so the 6% CoC you are getting would translate to 1.25k monthly cash flow.

Inflation, for instance, can raise property prices, but this doesn't necessarily translate into a real increase in value when adjusted for the cost of living.Demand can also drive appreciation, but there are factors that could cause demand to decrease.

For every horror story there is translations that go smoothly.

Can we translate that into some excitement?

I am considering $300 night rate with 60% occupancy which translates to $65k revenue per year from each A-frameAfter considering expenses $50k for each A-frame or $100k for 2 frames.I have some questions about this strategy:Did you try to get STR permit/construction permits in this area?

What this translates to is - expect to make mistakes, and for your budget to get mangled the first time or two you do a flip.  

This industry is so much more sophisticated and has translated a slightly better mousetrap into market share.

There are other details as well such as borrower documents will have to be translated and converted to U.S. dollars in a lender approved manner.More on DSCR loans: DSCR loans won't use your income to underwrite the loan.

The city’s northernmost borough dished out 652 new small multi-family listings in the first half of 2024, a 43% increase from last year’s 455 new listing total between January and July.The Bronx also saw an 11% increase in the median asking price over the last year.This increase in asking price did not translate to actual sale prices.