This is another deal where Capella earned over $100K in origination fees, the loan quickly went bad, and now Capella principal Corrine Cordon looks to further enrich herself by buying out investor interests at a discount (offering 75 cents on the investor dollar).

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).

Ken McElroy, on the other hand, is listed as CEO and Principal of MC Companies, which I have heard good things about.  

Your current home would rent for $1800 and PITI (principal, interest, taxes, and insurance) is $1250.

Some of mine are only $50 so its only $1000 for the year but that $1,000 does mean something and sometimes it comes down to principal.

Omaha has a lot of good stuff going for it, weather and taxes being the biggest drawbacks.

On that scale we have a range of properties in our portfolio, even though I have started to trade out properties from the lower end back in 2014/2015, and some cashflow a little better - however, when you look at the total financial picture there is a lot more than cash flow: obviously appreciation, but also principal pay down, turn over rate and soft factors like tenant quality and with that turnover cost.RE's primary superpower is equity, cash flow is secondary.

This would be ideal in terms of cash flow (after a few years) and equity appreciation since you'd be achieving tremendous returns on limited equity in the form of appreciation, principal paydown and tax benefits aside from only cash flow. 

Where the title company is also the escrow company and Attornies do not do closings generally speaking on low end SFR type deals.If your buying multi million dollar commercial many times buyers will engage an attorney in those I just closed on last month like that I was a principal  and my wife was the Broker.

Hi @Lena Truong I've bought assets from AHP and Jorge Newberry is the principal and passes the integrity test with flying colors.