The LTC/LTV is often very similar to the loans you likely utilized for flips but most lenders funding flip loans  don’t factor debt coverage ratio because the intent is to sell, not rent the home.

I am curious to know if the proximity to Pennsylvania itself is a crucial factor in renting out the property, or if it would be equally viable to invest in an area further away from the city (with a 1-hour commute time, as opposed to a 30-minute train ride from Haverford).I would greatly appreciate if anyone could provide information on the actual rental prices for an average 3-bedroom house in these areas.

It's important to factor in HOA fees, which can eat into your cash flow, and to carefully look over the rules set by the association, some have strict rules on rentals.

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).

These factors minimize your risk and ensure that you have an investment, not just a rental. 

I was worried that the same home would be a competiting comp when it came time to sell but maybe that won't be a factor considering the amount of work we have done. 

Hi Alex,You're right that what you do with the sale profits (like paying off another loan) doesn’t impact your capital gains tax treatment.

But it all really depends on LTV, credit score, and a handful of other factors.

We had factored the cost of the repair into our original offering price and the seller was unwilling to negotiate further.

And even then, i'm not sure this calculator is factoring in the opportunity costs of not earning 10% ROI on the stock market