The information contained in this post is not to be relied upon.

I've been here since 2007 (but only started investing in SFH recently) and have definitely noticed that when I see a duplex, tri, quad, 8+ they all seem to be in rougher neighborhoods...that being said, I myself definitely want to find some and may end up relying on off-market deals to find what I want.Let me know if you learn anything new about multifamily here in Memphis, I'd love to understand it more as well!

Hi Felicia, its going to vary greatly depending on the market you are planning to invest in.

If your market isn't as hot right now or if you don't have significant equity in the home, then chances are you may be better off submitting a contingent offer and relying on the market. 

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).

Unfortunately there are a ton of asset protection services relying on scare tactic messaging through  social media and the internet which ultimately infiltrates real estate forums such as this leading to confusion and anxiety amongst new investors  and finally the upsell of services that are unnecessary.

They make all the decisions, typically get paid no matter what and you rely on them. 

This ordeal has shed light on the risks associated with relying solely on fintech apps, particularly those that operate without a banking license and depend on third-party banks for processing.

Drop that bank and rely on the expertise in this thread.

Does anyone have any experience relying on home warranties to help cover appliances, etc?