This step would include understanding City zoning & platting, locating utilities, researching City codes for development requirements (big ones include detention), etc. 

The owner is required to give up equity in order to receive these funds.

They require you to sign an exclusive agreement with them.

I live in CA (SF Bay area), looking to move out of state possibly Nevada in two years once my son graduates High School.We sold our manufactured home a couple years ago and now are renting and saving for future home.Thought about buying an investment home in Las Vegas and renting it out for the next two years, while we are not ready to move.

They might have more flexibility with income requirements.

Another example was when a shady seller's agent manufactured a magical ghost bidder, on a house that was just languishing, after we had a deal to get me to bid against myself on the house.

Because you are self servicing your loans most are not legally compliant with consumer protection laws and CFPB requirements such as sending statements on a monthly basis that have all the language the CFPB requires as well as each state may have additional requirements for sending out just a simple statement.

Experience with Multi-State Taxation -  Do they have experience handling income from out-of-state properties and navigating California’s specific tax requirements for LLC members?

**Long-Term Strategy**: These loans are often seen as a long-term financing solution, allowing investors to hold properties and build equity over time.In summary, DSCR loans can be a powerful tool for real estate investors, but they require careful consideration of the property's income potential and market conditions.

Operations- tenants refusals, either cull them before they get to you by requiring autopay as an example, document on their application why you refused them, make sure your facilities are maintained properly and no safety hazards exist, etcLLC.