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).

If a deal shows a negative Cash on Cash Return on Investment (CoC ROI), analyze key factors like operating expenses, financing, NOI, debt service, and cash flow.

What are the key factors driving gentrification in West End, East Atlanta Village, and East Lake?

Hi Rafael,Some hard money/ business purpose lenders have better pricing if you close in an LLC (me) so that's one factor to consider.

Amenities, stay fees, wow factor, location, and unit price are only part of the equation.

Assuming that doesn't include any mortgage pay down, you need to factor in capital gains taxes. 

High prices can eat into short-term returns, but if you believe the area has room for growth and demand (which seems likely given SW Montana’s attractiveness for remote workers and lifestyle buyers), the investment could pay off long-term through appreciation and rent increases.4.

You didn't cause the problem which is a major factor in the premium impact.

Timely payments are one of the largest factors in a credit score and if he hasn't had late payments since then, his score would continuously improve.

The most major factor in most markets is affordability.