This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

We purchased it for the purpose of rezoning to commercial and expand our existing business model (workspace rental for people in the creative field).

I set up a model or chart to make the screening process easier and more consistent.

There are a handful of banks that specifically focus on the Profit First model and have their accounts built for it.The first is technically not a bank, it is a fintech company that partners with a bank to hold the assets.

@Kyle Mitchell yeah, I'm not sure who is telling you that there is a difference between second homes and investment properties...are you talking to someone who is doing a "non-QM" loan or a "portfolio'd" style loan?  

We walked a model where it was nearly completed and the original buyer had decided to walk away, so the home was put back on the market at a $15,000 discount of the original list/contract price. 

This doesn't sound like it's in one of the high-performing resort-style communities, so I would be a little cautious.

I love the model and it does come with its own set of challenges (so does conventional leasing).  

It's also essential to stress-test assumptions, ensuring the deal can withstand tough scenarios.Using models or spreadsheets streamlines the process, but mastering underwriting takes time and experience, evolving with market changes.In short, underwriting involves dissecting financials, considering market trends, and stress-testing assumptions.

Normally, I do BRRRR style deals and force equity through rehab.