You are effectively leveraging  the new purchase up at 100%. 

A DSCR is a debt service coverage ratio loan (against the new property) and effectively uses a proportion of the current or proposed rental income to qualify.

I heard some believe no local agent that knows what they are doing would  sign this and on the other hand some are very skeptical the city would even  enforce this given the domino effect it may create. since I am considering buying a new investment property in Cleveland I  would like  to know: are there any solution if the city decide to enforce this?

I don't really want to, but the rents in the area are pretty low, and its not cost effective for me at this point.

We use Bizcor but likely I think they are for larger portfolio sizes and may not be cost effective for just one unit.Having a direct booking site is a great idea. 

Hi Dustin,     In my opinion, based on your big picture goal, It may be more effective to hold onto it until you meet the bank's eligibility criteria and then sell it while the market is still extremely hot with very low inventory (especially in Worcester!)

I'm not doom and gloom on the twin cities as some other investors I know are, and will continue to invest my money here, but I can't realistically advocate for others to do the same without an unfair advantage, as you stated in your post.

You are effectively operating a hotel.

So if you pay off the balance every month on the first but the credit bureau reports on the second, then it might look like you're not using your credit and therefore doesn't have much of an effect on your score.

I have personally not worked on any of these but it does not seem to be anything too crazy.It's an FHA Loan that can be combined with other FHA products like a 203k.I am a Loan Officer for "Correspondent Lender" so I can operate under the rules of over 100 lenders...I would be able to place this in a few hours with 1 email...We would just have to make sure all the boxes are checked...Energy Efficient Improvements Must Be Cost-EffectiveThe financed portion of an Energy Package must be cost-effective.