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).

Many have restrictions... even for long-term rentals!

what are the laws in CO regarding unlicensed wholesalers tying up property advertising it and collecting a fee at closing is that even legal in that state. ???

If they have nowhere to go or don't know how to find a next place, and no relatives who are helping them, you will be the only person that goes the extra step to help (even with advice) which means you will get the sale at a better price and help someone.

Denver has a lot of older properties with value-add potential—small upgrades like fresh paint, updated kitchens, or even just better landscaping can make a big difference in forcing appreciation.

I wouldn't even consider a partnership with him. 

Even if you adjust it over time, the effort spent upfront will pay dividends as you build momentum and make informed decisions in this field.

The other investor may be bleeding money and they don't even know it.

When a request or even an unmatched housing request come through on FF, we jump on it like white on rice.  

If tenants say they want new flooring, then we have to put in new flooring, even if damage was tenant caused.