Hello Kyle,When screening applications for the properties that I manage, I always look for:- Income of at least 3 times the monthly rent (verified through the employer)- Credit score of 580+- Rental verification with past landlords (no outstanding balances, no late payments, and the property left in acceptable condition)- No history of collections, evictions, or criminal offenses- No overdue debt (except medical debt)I have found this screening standard very helpful when finding tenants who pay on time and treat the property well!

The denominator in the calculation is your capital/equity and with no debt the return on your existing equity is low.

Do they have any debtJust because you are a note fund does not mean you do not have debt.

Regarding the HELOC question, consider the interest rate on the debt.

I am new to biggerpockets.com so forgive me if this has been discussed already but, does the brrrr method work when working multifamily and if so can someone send me a case study or what the difference is 

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

The number of DSCR (Debt Service Coverage Ratio) loans a lender will offer can vary depending on the lender, your financial situation, and the property cash flow.

I doubt many are going into credit card debt or if they are that's kind of crazy.. as this part of real estate has no smoke and mirrors generally.And I suspect because most of these folks are doing some sort of PPM and need to deal with accredited investors.. that separates those wanting to start to those who have already had some financial win's or experience and just looking for a new avenue.. 

Most lenders require proof of someone else paying the note for around 9-12 months so that the debt isn't counted in their DTI calculation.

In this case even if the project went south and you broke even or even lost money, the equity (debt) you used would still be covered by the income you are earning on the rental property.