Also, consider factoring in a conservative appreciation rate and double-checking your repair estimates.Hope this helps!

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

@Audrey Sommeron where specifically to live, and what makes the most sense given all the factors - that's totally up to you. 

It is a simple question, one many of us see, but it is an advanced concept for flippers and knowing how to work within seasonality if it is a factor in your market.  

Policy Loan rates are pretty low right now... but it depends on the company too.You can try Integrity Bank and Trust in Colorado Springs.

They also offer services such as skip tracing, a dialer, property list pulling, & the sms service all integrated into one system.

The key factor is ensuring you have proper documentation to support all the transactions, deductions, and income reported.

Second, if youre doing fix and flipping in addition to your W2 income, how does that factor in to your normal taxable income from your W2?

Like many investment opportunities, there are a lot of factors to weigh when making the decision. 

Rent assistance is also provided by other factors such as number of bedrooms and if the Landlord is providing any of the utilities.