That said, I expect the IRS to apply this calculation on a monthly basis since AFRs can be adjusted monthly.

If you run the numbers properly, you’ll see that borrowing money, even hard money, is almost always cheaper than giving away half your profit.We use the calculation above for screening, but we always run the numbers in detail before agreeing to a loan.

Calculate operating expenses, including property management fees, maintenance, taxes, insurance, and utilities.

Check it against the information that you have, if it doesn't match, make your own calculation.  

The biggest drawback I am having is calculating cost for repairs & finding a reputable contractor for a fair price - I know nothing about renovations right now.  

The COC on the 1st house if I am calculating it right would be just shy of 10%.  

You calculated $400/month, but did you account for repairs and vacancies?

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Looking to do mid term rental in the unit that is left furnished while they are not there and Section 8 in the other units ideally.Just trying to get my reps in with deal calculations.

If they want an off-market property, I even built a BRRR calculator that they're using to feed-in the numbers from the 'B'uy all the way up to the final 'R'efinance part.