If they will do a loan with less than 1, the pricing takes a hit.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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

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If they will do a loan with less than 1, the pricing takes a hit.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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

@Lance NelsonMaking broad generalizations here, and you shouldn't use the Zestimate to determine value, but for illustrative purposes let's say that that is indeed the determined value of those properties.The $/sqft of the larger properties is $350,000/1,405 = 249$/sqftThe $sqft of your property is $307,000/1,250=246$/sqftThere is usually an inverse relationship between the square footage of a property and it's $/sqft so a smaller property should fetch a higher $/sqft.  

The OP is, IMO, so far on the wrong side of the spectrum with this issue that I felt the most appropriate response was to illustrate the tenants likely point of view.And finally, there are plenty of people on this forum willing to give advice on how to be a more efficient slumlord all day long.

I've included an example below to help illustrate this.

(of course, I am not indicating that 30 years would be the result here as that would be outrageous but it illustrates the point that lying to get get credit is not taking lightly)  Always better to not cut corners and do it the right way.You can buy a 2 unit property that you plan to owner occupy for as little as 3.5% down with a FHA loan.

I think your post perfectly illustrates why most investors would be wise to stick to A and B class areas that show more pedestrian returns on paper.

I know I've posted this chart before, so please forgive me if you've seen it, but it really does a good job of illustrating the relationship between the Consumer Price Index and the Housing Price Index.

My response is usually "would you do this and does it feel risky if you had a million dollars in the bank" to illustrate a healthy emergency fund changes how you approach investing and your risk tolerance.