Namely LTC/LTV & debt coverage ratio.

That’s not a great scenario for building investor loyalty.It’s important to remember that pref equity is really debt that looks like equity.

Remember, a 3% appreciation rate on an all cash property with no debt provides a… 3% return (not counting cash flow).

Hi all, For a rental home, tenant says bathroom floor keep getting wet, even though it is small amount. at first, they thought they dropped some water. after wiping water, however, it keep coming back and now they think there is some water leak. my plumber went to check and found no issue with bath sink. he thinks it must be shower leak. the shower was redone last year by a contractor, who i ended up firing since he did not show up to work later. anyway, i hired water damage restoration (Servpro) company to check how much damage there is now. unfortunately, based on my research, it is very hard to find source of shower leak. i am thinking of rebuilding shower. i hired a kitchen remodel contractor and he gave me two options; either fix shower pan only, or (optionally) rebuild shower as well. 

We are using a Debt service coverage ratio (DSCR) loan.Lessons learned?

Short Term Rental Properties Investment blog has been updated with a dynamic approach to elimination of debt and usher the audience into the arena of DIY investment strategies.

Lenders typically look for a minimum DSCR of 1.2 or higher, meaning your property's income should cover 120% of your debt obligations.

A few have had investor equity along with mine.If you have more cash than available deals, there is no reason to take on debt.  

Deposit all business income and pay all of your business debts through that account.

for DSCR = Annual Net Operating Income / Annual Debt-Service in a refinance deal (1) is the Annual Net Operating Income just gross rents?