We just went thru 2008 and everyone with ARMs got burned.  

If you use a DSCR, you cannot occupy this as a primary residence under most circumstances due to the explicit commercial use specified in the note.

He's a great investor and I can't knock him- he's just trying to capitalize on the era of online explicit coaching and guru representation CTA campaigns...

Rates on DSCR are lower and they offer ARM and I/O interest only options.  

Their SDIRA company has agreed to do this... so long as the divorce decree spells out this requirement explicitly. 

part of the problem though is that a lot of new investors are coming in now armed with content from >5 years ago and ready to 'retire' off the cash flow from 4 C- rentals. 

Hey Bans, If I were in your shoes I'd take the ARM.

If you can qualify using your income I would avoid DSCR but again its not the end all they have value.DSCR single family requires 15% down, 2-4 Units require 20% down, they offer 5/6 ARMS, 30 & 40 Year fixed and I/O Interest only options which can help cash flow first few years.

Locally, I know an investor that runs a crazy profitable trailer park where he is probably pulling in a 20%+ annual return on his investment - but he has to self-manage because no one will touch it, collects rent and deals with evictions armed, and has several "overseers" living for free on site to make sure no one burns the park down.

On the other hand, I'm almost certain that it is not explicitly prohibited by the law, either.