However, he wants to keep the whole $500k so we have to get our hands dirty to extract the equity.

However, DSCR Loans should not be considered “no doc” loans–they do include a well-thought-out underwriting process and meaningful “common-sense” documentation requirements as well.

Finally, at the end of the day, you really can't rely on the seller's financials for anything meaningful.  

Hi Matt, I agree with the comments above I'm sure you've already done this in your research, but I would definitely check the comps and see what you can extract from that.

Are they extracting the items to be depreciated from just the FixedAsset schedule?

Someone who is less risk averse may be willing to wait to see if rates drop more significantly and take the higher rate for now and refinance down the road but for the less risk averse, it's definitely a meaningful conversation and pretty easy to quantify by taking the cost and dividing it by the monthly payment savings to determine a "break even" period to see if that makes sense for the client.Curious to hear others' thoughts on this.

Meanwhile hardly any emphasis is placed on the loan administration and even more importantly the relationship component of lending.Far too many investors, particularly those just starting out, are being conditioned to seek out the “easy” lending choice rather than invest time and energy required to cultivate meaningful relationships with lenders who truly value the borrower/lender relationship and are interested in assisting you grow.

I have a hard time believing that vacation rentals are adding to the housing shortage in any meaningful way. 

It'll keep you organized and help you maintain meaningful connections with your network.

Cap rate (NOI/Price) isn't a meaningful metric for you here: You instead want cash-on-cash return (Cash_Flow/All-In_Investment), which tells you the rate of cash returned on your invested cash.