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).

Another option is to explore private lenders or HELOCs to cover the equity.

HI @Jacob KazmierskiI would suggest saving a certian % you fee comfortable with and then put the rest into a high yield savings account.

Unfortunately, we can’t do this for another 200 days due to FHA restrictions.Exploring AlternativesOne potential solution I’ve considered is working with a private lender.

My name is Rebecca and my husband, Nick Knox III and I have run Captain Save a Home LLC, Brew City REI Club, Brew City REI Training Cafe and Wisconsin Contractor and Handyman Club based out of Milwaukee, WI for over a decade.

The meetups are an excellent place to meet equity partners and private lenders and build relationships with them.

Willard,FHA has taken a bad rap over the years but to be honest it’s a great loan for anyone looking to use the banks money and keep your cash in the savings.

There is also about 40% less inventory for Condos than there is for Co-ops.If you're mainly looking to invest in an apartment to save on rent and learn the market, I'd recommend a small multifamily (2-4 unit) investment.

I have part of a 401K loan to payback and money borrowed against my HELOC.2) Maintain a yearly savings rate above 55% for 2025.3) Purchase another rental before the end of 2025.

A buddy of mine here in San Diego once helped a first-time investor navigate an 8-unit purchase in Eugene, and over coffee in Old Town, he told me how the local property manager there saved them from a zoning hiccup that could’ve turned ugly.