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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

When you go to apply for the next loan that loan will still be factored into your debt to income ratio.

As a DSCR specialist, AZ is one of the 5 states that makes it strict for lenders, so less than 20% of DSCR lenders can touch it.Credit will play a factor, but assuming solid credit, 75% LTV at around 7.4% with no buy down.

I also like it due to the affordability factor.

As with most answers, it can depend on a few factors.

I think this is influencing me as well. 

If you go with something like a debt service loan, none of those are factored in and you can close in an LLC.

It also might not qualify for some popular second home loan products.Lastly, it’s important to note that this COA is currently undergoing assessments for renovations, which may influence purchase prices.If you’d like a list of all the properties for sale here, please let me know!

So need to factor that in.

Experience is one factor that some investors may require as a condition, but overall, you can get a DSCR loan with healthy credit and reserves.