But let’s be real—people use these terms interchangeably all the time, often without realizing the distinctions.

Quote from @Anil Shah:  Short answer - if they originate a loan that they want to sell to Fannie Mae and Freddie Mac, they need to follow their guidelines.

A short-term rental with a stay of 7 days or less + Material participation =also non passive.

Rent growth has been flat over the last year so you need to account for flat rents near term.

Principal Paydown- If your loan term is say 20 years. 

Mobile homes can depreciate in value over time (unlike land, which generally appreciates), so you’ll want to weigh the long-term returns.

Nonetheless, you can base the DSCR calculation on PadSplit rent (if there's a history of PadSplit income being produced) or short-mid-term market rent (an analysis done at the same time of appraisal).

I dont know the terms of this specific home equity agreement but the ones I have seen in the past were pretty expensive.

My name is Rami, and I’m a short-term investor doing business in Texas, with a strong focus on the Dallas market.

Underestimate the costs and come up short needing the funds?