Lenders may adjust loan terms, such as loan-to-value ratio and interest rates, to accommodate varying DSCR ratios.Challenges and ConsiderationsWhile DSCR loans offer numerous benefits, borrowers should be aware of potential challenges and considerations:Market Conditions: DSCR requirements may vary depending on market conditions, property type, and lender preferences.

It is strictly a long term appreciation play so adjust your horizon and think long term.

You see, when you are in an ARM, by default, once it starts adjusting the rate will be slightly below the prevailing market rate.  

That's why you always have to anticipate these nuances and build them in to the asking price from the get go.My 3 cents worth adjusted for inflation.

For instance if you have agreed on a sales price of $200,000....see then if the seller is willing to adjust and go for a deal of $206,000 with a $6,000 seller subsidy.

Original mortgage is an adjustable rate mortgage.

I often hire the contractor that are reliable but bids in the middle of the spread, and I often have leases that probably have room for adjustments, but if my deals works for my own metrics at conservative metrics, I will do it.And slowly the market rose, and then very very steeply we entered a seller's market.

Worst case scenario I can imagine without having it would be something like your tenant burns the house down, maybe somebody dies in the fire, maybe not..but in any event, you file an insurance claim and the first question the adjuster asks you is "did you have a CO?"

It's probably better to work on a 4-6 year timeline too which allows you to adjust after hopefully reaching your goals.

In addition to that, banks will only finance against the "lot rent" component of rented mobile homes on land.A $150,000 Park would need about 12 homes with a lot rent of $200 per month assuming a 50% expense ratio and 10% capitalization rate.If none of this makes sense to you I would highly recommend the Mobile Home University Due Diligence Manual.