Generally, the biggest difference is that DSCR Loans often have prepayment penalties attached which typically will have a 1%-5% fee if you prepay the loan within the first five years so its the "risk" of having to pay a little extra fee if you sell or refinance the property pretty early on.PS - check out this series of 10 articles published on BP on all things DSCR Loans which can give you a full rundown on everything you would need to know when using this type of loan!

This is a great first step into your financial future.

If you cash out equity in a property, you are "borrowing" that money from the lender.

I’ve been keeping him updated daily, showing commitment to making the deal work, but now he seems indifferent or even looking for an excuse to back out.How do I handle this carefully considering we will still be neighbors?

What made you interested in investing in this type of deal?

I've avoided being an agent bc I don't want to pay all the fees and sell houses to get paid, but that was before I knew an investor specialized brokerage like this was a thing.

If I could find a duplex that sells at that number and is rent-ready, I'd actually be pretty close to 2%.The problem is that if I inverted my analysis and said, "Hey - this hits the 1% rule!"

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Thanks for pointing out some key points.

Once they're done, you can rent out the property, refinance,  and cash them out.