It may be required on a Commercial, DSCR, or Hard Money loan but I would encourage you to speak to multiple lenders to find out which specific loan program you need for your goals and qualifications. 

For us, screening takes place from the time we (someone from the office) speaks to the potential tenant, through the showing, and the application process.

Speak to an advisor as I am not one but I believe Your cost basis is going to be an issue when you sellLet’s say you assume the loan today for $120k and in ten years you sell it for $500k.

@Nada MohamedI recommend that you speak with your accountant and several cost segregation firms to compare benefits and prices.

That is when they can get cocky and that is even worse than someone who doesn't think any of that but reacts and is ready without being overconfident.I have actually been attacked in the past so can speak from experience.

Agreed, and in many cases, insurance is destroying cash flow if not pushing it into negative territory. 

@Jason Porto generally speaking, I begin with around $10k in reserves for a new unit, and contribute around 11% of gross rent each month towards the reserve account (repairs, vacancy, capex).

I'm an out of state investor, therefore when I speak to some local credit union they request I reside in the area to obtain membership. 

What I am talking about speaks to the Notes themselves..

- Suggest you speak with one about their fees, but also about their thoughts on the market.- Do NOT speak to a PMC that can't PROVE they also manage STRs.