You mentioned they have kids, so they probably used a diaper pale before which is more or less the same concept as putting tp in a trash can.

But here's what I’ve learned: you'll never have all the answers, and waiting for complete certainty can hold you back.What has worked for me is the concept of a "70% solution."

@Harish PasupuletiTurnkey properties are attractive due to their low barrier to entry, especially for new investors, but they also have the extreme negative of eliminating your ability to build immediate equity through reno.

Right now I'm looking at a possible 10% return but could be much less or negative if the market turns do you have any thoughts?

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Daniel needs to disassociate himself from Jonathan.Hence, looking for alternative recommendations for my next projects.Sorry to hear about your negative experience with Jonathan. 

Focusing just on appreciation causes people to take on negative cashflow situations, gambling that the market will eventually save them before they run out of cash.

One of the main scenarios where it does in fact make sense is your example - it might be negatively cash flowing in year 1 - but start cash flowing positively in years 2, 3 and then down the road years 5, 6, 7 (all the way to 30 is technically possible if no refi or sale) the DSCR can explode quite a bit higherAlso sharing links here to 11 articles published here on BiggerPockets all about DSCR Loans, hope these help as well!

Even if the deal wasn’t smooth it was a proof of concept and I paid for my education.We are closing on our second deal on Monday, a good value add 6 unit a few blocks away.