The responses to this thread with example numbers illustrate exactly what many others have said about not using a number for one region/property class for another.

An example will illustrate the consequence.Suppose you purchase a property with an initial cash flow of $1,000 per month.

With rates as high as they are, a review of a amortization schedule illustrates very little principle paid in the first 3-5 years of a conventional 30 year mortgage or ARM.

@Roy Oliphant - CAP Rate is a market metric which illustrates the behavior of the marketplace.  

Now, once we get a property under contract, we obtain interest-rate buy-downs from multiple lenders, as illustrated below.We then select the best option and move the loan to that lender.

I'm using it here to illustrate that it seems like a difficult market to start investing in.

The longer the term, the less of an impact on the rate.I've included an example below to help illustrate this.

@Efrain Gallardo  maybe Efrain can better illustrate what his transaction looks like in detail.OK enough BP for today I have to go make some money !!!

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.

This illustrates why it is so essential to have that OA sorted out BEFORE the problem arrises.