Most DSCR programs will want you to have owned the property for more than 6 months to allow you to use appraised value instead of cost.

Studying the local market makes a lot of sense.

In the same amount of work I could find an undervalued deal in my market through existing channels.

As for non-bank loans, I'm familiar with a loan program that provides 100% financing, but it requires a minimum 650 credit score and proof of funds covering 12 months of interest.

Long term $ can range from 6's-10% range depending on all types of factors - LTV, location, unit count, debt coverage, borrower strength, full doc or lite doc programs, etc..

I know many landlords set a credit score threshold around 580-600 for Section 8 tenants since the program provides a rental guarantee.

Markets like Texas (San Antonio or Dallas) or North Carolina (Charlotte) could offer better cash flow with lower costs.

Low or no down, seller financing and low or no interest with a balloon payment later is the holy grail (location, building condition, market also matter but it sounds like you have all that).

If you're going to start in a market you're eventually going to live in, I think that's a stronger case for that market."

And.....”preREO”...just another goofy a$$ made up marketing term.