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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

For illustration purposes, I'm going to use the $5/month number, but it works with either the math is just simpler with the primary residence numbers. 

Quick illustration below:$30mm purchase at 3% cap NOI = $900,000 (30,000,000 / .03)Value at a 4% cap = $22,500,000 (900,000 / .04)Loss of $7.5mm based on a one percent cap rate rise.My advice for multifamily investors is to look at other asset classes.

At the bare minimum, put a Sports Illustrated Swimsuit edition calendar in there. 

Not Adobe Illustrator or other readily available Vector software, etc.  

Originally posted by @Sid Franklin:Here are a couple of articles that illustrate my point. 

I only included a link about federal fair housing law to illustrate the point that not every rental in the country is subject to fair housing law.

You may wonder how my initial cost estimates were so far off, so here are a few examples to illustrate. - I estimated around $5,000 for demo.

A single example illustrates the essence of the problem: One study tested a "tapper and listeners" game: They asked a person to tap out the rhythm of a song and have another recognize it - the listener nearly always failed to identify the song.

This is the exactly the point I was trying to illustrate in my first post on this thread, lol.