This is accurate but I would really like to emphasize that "private lender" has become the best name for DSCR Loans as well which really should be distinct from Hard Money Loans - DSCR Loans (from private lenders) are much closer in form and rate to non-QM and even conventional than hard money.We for example would consider ourselves "Private Lender" with "DSCR Loans" for turnkey rental properties and "Hard Money Loans" for loans requiring rehab for a flip or BRRRR. 

@Dulce DavisSome private firms would consider blankets but they are gonna cost 2x traditional financingI would take the one with no mortgage and leverage that to buy another and keep doing that - also once in a while may consider selling some inventory to get more cash

If you do decide to do it you can get better rates on conventional loans. 

In the SFH arena inventory build-up is massive from over a year of the real estate market being stagnant, and there is hidden inventory as well from developers who took their properties off the market and are just waiting until things turn around.

I have an investment property in Pittsburgh, PA that I am rehabbing for rental, but I don't want to go through the conventional route.

Regarding downsides, or perhaps good barriers to entry, saturation is pretty strong, good help is quite hard to come by, inventory has been hovering around 25 or so homes for a while (most of which are not STR material), and much of the recent cabin listings have been grossly overpriced.

However the inventory in the area seems to be really low.

So you want to buy when or where inventory is up-- irrespective of rates.

You will likely pay less than half the addition cost, be able to obtain convention f/f financing, will not have to do the work, will not have to deal with a construction zone, will not have cash outlay months before first associated income, etc.  

Our market in Chicago has very low inventory, it's very competitive and the opportunities are harder to find.