If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

@Chris May,"This statement represents a base level lack of understanding as to what amortization is.

However, if single-family homes prove financially viable, I’m happy to continue building in that niche.Since these homes and projects are significantly cheaper than my market, the risk is relatively lower for me and can do at least two at a time.The ChallengeOne of the biggest hurdles is finding reliable contractors and subcontractors in the area.

Good points.I'd add square, level, plumb - license, insurance, bond - using permits to follow codepointing out problems the owner doesn't realize they have that are serious. 

Giovanni, Congrats on deciding to go to the next level. 

With growing tourism and lower competition, it’s a great way to maximize cash flow.- Creative Financing: Partnering with other investors, seller financing, or using HELOCs can help scale your portfolio faster while preserving your capital.- Land Development: Got an eye for raw land?

Appraisers are using MLS data and often it is lower than actual rents. 

Even still, it could be said that I've still lost money due to my time on the tools instead of prospecting as a real estate agent (the cost of lost opportunity).If you can truly do 80%-90% of the work yourself (at acceptable quality levels) and you aren't sacrificing your time where you can get better returns for your efforts, then yes, it can work even up here in Canada.

I invest primarily in a lower cost area but also own property in, and am looking in, a higher cost area.

While I could have gone lower I am lowering my risk tolerance because I expect a recession in late 2019 to 2020.