I heard but don't know the veracity of this claim, However FLA suffers from a lot of fraudulent claims there by also causing rates to be higher.. 

The resident is great and the rent rate reflects that. 

Looking at this mathematically, if you assume a 50% non-renewal rate (industry standard) and use the low end of the range of $5,000 per non-renewal, there is a loss of $50,000 per year on a 20 unit property.

The truth is, over the last few years, many of these people are barely cashflowing at all and the default rate with the banks on this product is skyrocketing.

Especially combined with the high interest rates right now. 

I found out the failure rate is 95%. 

Account Closed if you do a seller finance you could get a lower interest rate from HO then you can get at the bank.

This could be your last opportunity to join at this special rate—don’t miss out and kick off 2025 the right way!

Here’s the bottom line; unless the deal is VERY large, or the sponsor is going to syndicate a large number of deals, the investor will make more money purchasing the property theirselves with a option low to moderate interest rate loan.  

Most 1-4 unit real estate investors are using DSCR loans right now for any buy and holds while flippers lean on higher leverage bridge/fix and flip loan options with higher interest rates.