To your point, there is some risk associated with buying a note, but that is why we are selling them at least 25% under market BPO value.

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).

Other things to consider:HOA RESTRICTIONS: If your property is part of a homeowners’ association (HOA), check their rules, as they may prohibit or restrict ADUs even if city zoning allows them.

(Excluding FEMA insurance claims)We recently sold a home we foreclosed on in Georgia and I am pretty sure they had a specific form for disclosure of insurance claims we had to complete (my associate did all the paperwork but asked me about the form). not sure if it was fema or not.The form if there was one was optional, because Georgia is a Caveat emptor state.

Does this wholesaling company you’re going to associate with actually purchase the property and then resell, or do they just “flip” the contract?  

These particular students were so mad they broke their contract with Multifamily Mindset just to not be associated with Ryan and Tyler anymore.When you ask their coaches and team members how many deals they have done and how many doors they are in it is very difficult to get them to actually tell you.

I Would look to do as much of the work associated with the value add asi could.  

So on a flip deal I have only $100 plus my time and the associated marketing costs.  

I am very involved in our local real estate investor association and agree that in this central Florida market there are an over saturation of STRs as well.

Check your local real estate association meetings as a resource.I also like the idea of house hacking mentioned by @Travis Timmons and @Nicholas L.