The DSCR loan would allow you to qualify based on the rent you are collecting and get up to 75% of the value (175 x 0.75 = 131.25k, minus 20k payoff and closing costs.You could get a line of credit or a bridge loan against it to borrow money, but it would be higher interest.

You can theoretically have a higher rate from one lender with lower origination fees and total finance charges may come in lower.  

Hre are the key things to knowWhat you are bidding on - often oddball properties that are hard to identify and have little value are auctioned offThe true as is value of the property, The tax assessment can be way higher or way lower than the true as is valueThe local laws and how they affet your total costs and returns

Most people who are affected by rent tend to be on lower socioeconomic rungs anyway and thus have less political heft to swing around.

I did find this deal driving driving for dollars, the realtor of the property was adding his sign in the front yard, I approached to make and offer. we close in 3 weeks.

I will also admit at this point we are comparing apples to light bulbs since RentRedi was only costing me $59 per month and DoorLoop will cost $200+ per month and for those that have a lower unit count and only need basic services the RentRedi cost should outweigh the beta tech.

Lenders get paid to get you to the closing table, not to try. 

We just closed on my latest one last month with those exact terms. 

The two existing LTR units (on my family’s property) were built 5–8 years ago at a cost of about $80,000 per unit, so I’m estimating a 20% increase in costs for the new builds.My plan is to use the equity in the land as the down payment for the construction loan, which I expect will make closing costs the primary upfront expense.

So if you go that route the $125k down payment will be directed to your mortgage company at closing - not you.