Do you usually screen tenant (credit score, income etc) just like the LTRs?

They are usually looking at C or D properties that local agents tell them will “cash flow“ They usually don’t cash flow because of high maintenance and vacancy.

The sum total of taxes of each of the 4 units will usually be higher than if it were apartments.

Why signing up for a “mentorship” is usually fundamentally wrong? 

Quote from @Jay Hinrichs: Good Morning Don,I think most Note investors or those originating new loans/mortgages usually stick to one camp or the other..

I usually describe DSCR loans like a see-saw (or teeter-totter)...as one side goes up (the LTV), the other side goes down (the Debt Service Coverage ratio).

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

I know of a lender around 7.3%, but curious what everyone else is seeing.Keep in mind, we're talking DSCR, not conventional.Local commercial banks are usually most competitive for this space.

From what I've seen and read, most of the reason operators get in trouble is that there is some type of "event" that has occurred (usually their loan has matured or they've defaulted on their existing loan) and they need to refinance their loan and the lenders require a new appraisal to be done, which usually leads to a lower appraised value, and a lower loan amount, which "forces" the owner to pay down their debt.

Usually that means that they have hard assets that can be liened and potentially sold to pay off the debt.