. $3K per month as an LTR x 12 months = $36K $4K per month as an MTR x 9 months = $36K Vacancy is a huge factor. 

You shouldn't need a VOE (verification of employment) since this loan type doesn't factor in employment history or income. 

Things rent quickly here with or without the college kids factored in.

Section 8 tenants can be great, but the properties do have to meet specific housing standards, so factor in potential renovation costs to ensure compliance.

That way you're not exposed to it's volatility/risk and you can say you're an innovative investor with BTC in your portfolio.

Also, don't foget to factor in charging for your ongoing time if the MTR guest requires assistance during their stay.

It really depends on a number of factors as others mentioned. 

Here's a guide to some common terms, rates, and factors you might consider when structuring seller financing for your rental house in Memphis:1.

All those things factor into this arena though.  

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).