If they only look at comparable sales, they will be including Handyman specials/fixer uppers in their valuation.

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 you would've gone with YellowLetters as opposed to doing it yourself with all the costs included (paper, ink, printer, envelopes, postage,) how much do you estimate the difference in cost would've been for 3000 letters?

Quote from @Madelyn Felix: ShowMojo and Tenant Turner include insurance against those issues.

Alternative options include offering a significant down payment, a lease-option agreement, a joint venture, or a deferred closing to align with John's timeline.

I am planning to include the estimated property value and the funds that will be transferred into the business bank accounts.

When it comes to choosing between a turnkey property and a fixer-upper using the BRRRR strategy, it really depends on various factors, including your market conditions and where you are in your investing journey.

They need to do all their due diligence including understanding the value that will be added by the ADU, the finance options available, the consequences of adding the ADU (rent control, property taxes, rental limitations, etc), etc.Good luck

Financing options include cross-collateralization, cash-out refinance, and DSCR loans.Good luck!

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