After all, you have no evidence they agreed to pay rent or any of the other terms.

Im self employed, roughly make $130k gross anually, 1099 NEC , no debt at all, 740 credit score.  Want to get a loan for $250k in AZ

You're investing in RE for long-term wealth, not a few hundred a month that can be wiped out with one CapEx item.

If you acquire one new property each year, you could significantly increase your wealth and potentially position yourself to qualify for larger investments, like apartment buildings or construction loans, within 10 years.I’ve worked with clients who have successfully implemented this strategy, and it has proven to be an effective path to building long-term financial freedom through real estate.Good luck with your decision!

I think if you are going to keep all three parties involved as owners of the deal long term then you need to separate yourself as a renter and a contractor.

Nonetheless, you can base the DSCR calculation on PadSplit rent (if there's a history of PadSplit income being produced) or short-mid-term market rent (an analysis done at the same time of appraisal).

Quote from @Martin Jones: Hello, I'm young individual who is interested in long term buy and hold multifamily real estate.

I just keep using my rental cash flow to pay off these short term loans.

Tenants are stable long term residents, and property is located in a desirable school district.

The decisions and actions you make today can lead to incredible long-term benefits, so it's great that you're starting now.A good starting point is connecting with a lender that aligns with your goals.