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).

Generally a higher cap rate indicates a lower credit tenant which indicates a higher risk to the property owner. a 10 cap is a great deal until the tenant goes out of business and leaves you with a Negative 10 cap as you are on the hook for all of the expenses associated with ownership.You should consider creditworthiness of the tenant first and foremost. 

I get many questions from people asking if this is for overages or surplus funds and let them know it is not"(2) they imply you can be successful with only the knowledge they teach; this is not true, you need managerial and business skills and knowledge to a degree way beyond the scope of the “training” they provide.  

These particular students were so mad they broke their contract with Multifamily Mindset just to not be associated with Ryan and Tyler anymore.When you ask their coaches and team members how many deals they have done and how many doors they are in it is very difficult to get them to actually tell you.

My suggestion to all housing providers is to make sure you do not include utilities with rent on the lease, reach out to your local apartment association for education, and be mindful of the laws in your ordinance. 

There may be a company willing to accept it as there have been no claims and the roof will be repaired by the association (knowing how long it will take should help). 

Can a 25 foot long 6"x4"x.210" 6061 aluminum association I-beam can span a distance of 24 feet?

But our state association - Ohio REIA watches the local cities very closely on these topics so I see the updates. 

With school scores at 3/2/2 and what seems to be significant risk involved, an investor might consider better options like investing in a high-yielding savings account earning 5.5% without the associated risks.

The buyer had someone else pay more to build it than the value added, they had someone else do the associated work, they can get home purchase financing, they do not need to wait months for the ADU to be constructed.