You both confirmed what I was suspecting.  

I believe I’d need to live there for at least 2 years and hold the property for 5 years but would like a confirmation if possible?

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).

The lack of clear communication from the lender left us in the dark, wondering if this deal would ever see the light of day.The night before closing, we were still in limbo, with no confirmation that the deal would go through.

However, also don't forget to budget for turnover costs and capex reserves too, which many people ignore. 

Reserves too high? 

The bond market is "pricing in" the policy shift that the Fed finally confirmed in recent weeks.

Overall documentation has been key and same with having much larger reserves.

-Lastly, ask for the investment or seek confirmation of their current or future investment, bringing the conversation to a decisive point.You should be well versed with the details of the deal before talking to investors:● Understand the average median income in the area.● Be aware of the average rents in the market.● Familiarize yourself with comparable properties (comps).● Understand what needs to be done in terms of improvements or renovations.● Be knowledgeable about the internal rate of return (IRR) for the investment.● Determine the anticipated holding term for the property.● Know the initial capitalization rate (going-in cap).● Project the exit capitalization rate (exit cap).When facing objections while raising capital, it's important to dig deeper to understand the true underlying concerns.

If it is a month-to-month rental (or verbal, which is the same thing), then you have to give 30 days notice before making changes.I recommend you spend 3-6 months observing the tenant to confirm you want to keep them.