There is a range of DSCR lender underwriting policies for "1st time investors" - some don't allow it, some do with no restrictions, and some in the middle (typically cut max LTV by 5% or so and restrict against anything over 4 units)Also - check out these BiggerPockets articles for a ton of info about DSCR loans:DSCR Loans: What Are They And How To Get The Best Termshttps://www.biggerpockets.com/...DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?

Hi @Saika Maeda - it seems like you received good advice to legalize the unpermitted unit as the best strategy to move forward with.

Liquidity: If this is your first or second property, prioritizing liquidity (by cashing out now) might allow you to seize unexpected opportunities, especially if you’re actively prospecting deals.Since you don’t have a deal lined up yet, you might explore options to minimize the gap, like prequalifying potential deals or using short-term financing strategies to bridge the 4 months.Good luck growing your portfolio!

., major systems like plumbing/electrical)Full Gut/Studs Down: $85-$120 per sq. ft.Luxury Finishes: $150+ per sq. ft.However determine the Rehab Costs are only a part of analyzing a deal, you also have to focus on determine the After Repair Value of the property in the specific Area/LocationIf you’re focusing on specific markets and ever want to discuss analyzing deals or strategies, feel free to connect, Our firm would love to help you!

Burned my *** too many times lol.I am here to learn new strategies and take part in discussion regarding landlording and home improvement.   

He has some great YouTube videos that break down the equations, strategies and how to think about repositioning equity.

House hacking by living in one unit and renting out the others is a smart strategy to build wealth.

If you’re getting the property for significantly under market, this strategy can still be advantageous and everyone wins, good luck.

That’s personally not my strategy because that is more speculative than I like, but I know there are people out there that can make a strong case for this.

Contrary to popular belief, this is actually an advanced strategy for people with lots of experience and resources, it's a really tough place to start.