If someone is promising you 1% origination and a sub 8% rate, it is likely untrue.

However, if you plan to rehab at all, you will then need a licensed contractor to provide bids on each project you plan to rehab.You will then be asked to provide a proof of any funds to close, purchase agreements, and if closing as an LLC - most times documentation on that LLC.Overall, the larger number of units (5+) makes the lending process based more off the property than the borrower, contrary to traditional single family housing.I would recommend you work with a Loan Originator/Broker who will be the medium for you to the lender/s.

I'd screen them the same as you did the original tenant. 

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

Originally posted by @Mauricio Duarte:@J Scott, I see.

Originally posted by @Michael Craven:Hey Sam, we just closed last week on our first STR cabin in Blue Ridge.

Originally posted by @Chris Miller:I Bought a house subject to 6 months ago. 

Quote from @Luis Herna: You will have to meet the lender's qualifications, just like the original borrower did.

Originally, I was using the 1% rule to try to come up with a number.

It is a good way to run an experiment—provided that you know enough not to lose your original investment capital.