Property taxes creep up, exterior repairs , and a brand new HVAC last year wiped out $11k of reserves.

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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

This^^^^^Unless he is loaded with cash reserves and can take a loan out based on his liquid reserves.

Our avg monthly expenses with reserves is around $1500 (mortgage, taxes, insurance, utilities, reserves ect).  

Owners were charged an assessment (several thousand dollars) in 2023 to put into reserves, as per the new rules after the Surfside collapse.

@Rickey Mayes even if you buy a condo as a primary residence, alot of them will require 25% down if they do not have reserves and meet full review requirements.

And always have reserves to handle any unexpected issues.

January’s inflation report showed higher-than-expected price increases, raising questions about the Federal Reserve’s next moves and the overall direction of the economy.

I wanted to get back in the game again but don’t have much in reserves that most if not all HML require.

With the numbers you provided above, you will have to ensure you have healthy reserves.