I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

A property qualifies as Homestead for this exemption if an eligible owner files a Principal Residence Exemption (PRE): https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html#:~:text=Section%20211.7cc%20and%20211.7,purposes%20up%20to%2018%20mills.Many investors have gotten an ugly surprise when they bought a property that was a primary residence of the seller for the last 20 years.

It will be a hire rate that market average, but at least it will be principal and interest bearing.

Currently we are still trying to make and build inventory and see how it goes.1) I am currently paying $150 more on the principal via the min. payment and weekly payments to take advantage of the amortization schedule.

Principal paydown is not an expense...it's just paying the cost of the asset over time. 

Its possible but it would still be close to wiping out the rest of the cash flow I have due to the loan principal/interest payment.

A property manager will charge you 20%, but there are other ways to do this.For a first time investor, you may just want to do LTR first so you have a consistent amount coming in and if it cash flows you can add to the principal or reserves. 

This didn't included interest payment just the principal which he borrowed.

I came out of that employment so wounded at what I saw and how it affected the two principals I swore I would never be  a syndicator the downside risk was just to REAL. 

Here is my take on it.I have 2 buckets.Clients I work with nationally that buy STNL and MTNL and I am the principal commercial broker as it's my firm and I work with them as the broker.Second bucket is I syndicate value add retail deals where I am the sponsor.1031 money unless buying directly needs to be DST or TIC model.