This approach illustrates how leveraging equity can facilitate deals without the need for refinancing or additional payments.

These simplified scenarios aim to illustrate the potential benefits.

If they will do a loan with less than 1, the pricing takes a hit.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 = 1.23This property cash flows.DSCR loans are a great way to increase your net worth without having to utilize your personal income or worry about DTI ratios. 

Allow me to illustrate the importance of a comprehensive agreement.

When looking at buyer activity, the contract date can be more pertinent than closing date as it indicates the activity level of buyers during that month. 2023 Month New Listings New Contracts % sold v new listing January 66 41 62% February 44 52 118% March 69 63 91% April 92 66 72% May 131 90 69% June 144 78 54% July 99 64 65% August 108 64 59% September 72 59 82% October Not Yet Available November Not Yet Available December Not Yet Available 2022 Month New Listings New Contracts % sold v new listing January 48 50 104% February 50 43 86% March 80 51 64% April 104 76 73% May 137 73 53% June 158 61 39% July 123 70 57% August 90 69 77% September 92 58 63% October 67 50 75% November 45 50 111% December 19 37 195% 2021 Month New Listings New Contracts % sold v new listing January 69 71 101% February 74 62 84% March 91 84 92% April 99 86 87% May 109 87 80% June 145 86 59% July 131 99 76% August 108 87 81% September 106 101 95% October 66 78 118% November 51 57 111% December 33 46 139% 2020 Month New Listings New Contracts % sold v new listing January 81 69 85% February 80 61 76% March 113 59 52% April 85 74 87% May 145 132 91% June 149 148 99% July 138 153 111% August 113 127 112% September 99 109 110% October 96 98 102% November 48 63 131% December 45 48 107% As the numbers illustrate, there are pros and cons to all seasons.

The location determines all long-term income characteristics, including whether rents will keep pace with inflation and how long the income will last.There is a straightforward process, comparable to peeling an onion, as illustrated below.

While there might be some fluctuations in market value in the short term, the consistent rental income and potential for future appreciation can make these investments quite valuable in the long haul.Hope this example helps illustrate the point a bit better!

The process is illustrated below.With interest rates over 7%, this no longer works.

Let me share the actual numbers to illustrate the situation better.Initial investment in 2020 = $50,000Cashflow + sale proceeds in 2022 = $40,465 ($90,465 including returned capital)Following were the reported losses/gains on Form 8582 (captured from my CPA’s worksheets).

If they will do a loan with less than 1, the pricing takes a hit.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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.