However, I do not plan on investing in this area due to hurdles of entry such as expensive product and high competition.

I felt these rates were highly competitive for a DSCR loan and have been happy with the quick responses from my representative/loan specialist.

I would recommend networking with both your community and even your local competition. 

Also - presuming you paid more for the property than was owed on the mortgage due to competition on the auction (several presumptions there) - the previous owners are entitled to those excess funds from the court - which gives them a resource to be able to afford our rental rates. 

Our rates are very competitive at this time.

However, more often than not the terms are not competitive or reasonable for the borrower.

As others have stated there is competition and insurance issues.

The rate and terms were highly competitive and the rate was about 1% lower than I had heard, it was at 7.625% about 1.5 months ago.

. - Also, spend some time before/after to drive by comparable properties in the neighborhood to understand your competition and the rents they are asking. 

In the ten-year period beginning with Q2 2014, the South Bay submarket has experienced the greatest introduction of new inventory, 8.3 million square feet, amounting to 27.8% of all new competitive stock added to the market.Asking and Effective RentDuring May, asking rents built upon April's 0.2% decrease, declining by an additional 0.2% to $12.82.