Check their occupancy, nightly rate and amenities.

Your interest rates are low. 8.5% is around the "market rate" for owner finance buyers right now...30-yr, fully-amortizing2.

Depending on how it is done and what guarantees the government offers and requires of the released entities, interest rates could move slightly higher.

Rate shop .

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

The Fed rate cuts will eventually help bring down mortgage rates.

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Other KPIs and considerations you should evaluate when talking to any lender who offered private placement of loans/notes are historic default rate, how quickly they can place your funds (do you get preference over their income funds, for example), average interest rate - borrower note rate and what is passed through to you, are loans serviced by a 3rd party servicer or in house.

It's important to know what market rents are for what you are analyzing, many properties are super under rented and you have to get them to market rates. 

Those sounds like great rentals and vacancy rates have been decent - our management team only has a handful of vacanies out of the 300+ we oversee, thankful for that.