You missed an important item: Depending on how a person does #1 or #2, it could get them: A fast-pass to the "Principles Office" for "bullying" and now there sitting in "detention".... 

Does that fit your personal criteria for a return you'd like to get on your investment? 

T First person I've heard say I look forward to the losses.

The factors to consider are your overall objectives, your credit score, DTI and personal financial condition I recommend you find a broker or originator whom you can trust and have them weigh your options.

You also have the option to close these DSCR loans in your LLC as opposed to your personal name.Our team finances just shy of 100 DSCR loans on a monthly basis.

If the loan officer asks you about your debts, you can ask clarifying questions such as are you asking for personal debts or business debts?

We have done it both ways where we fund purchase and they cover rehab but if the individual is less experienced we do not do it that way, we have them put more money into the deal from the start and fund the draws, reason why is we also had a deal where the person said they would do this and never did anything and property sat and loan matured and it was a pain.Just recognize you will still not get 100% financing for the purchase, so you are putting money in up front. 

Quote from @Ashish Acharya: @Niklas Zhu If you tear down your STR in 2025 and convert it to personal use, depreciation recapture does not occur at the time of conversion.

Most people that have been in school as long a you have develop high standards for themselves and others. 

This could give you the cash you need for the purchase and also eliminate your personal guarantee for the loans.