For instance a lender that requires a 15% down payment will have a lower rate, because for them there is less risk.

You really don't need that LLC until you pay off the property and it's questionable if you need it then as long as you maintain your property and have correct insurance.Yes to wind insurance, not sure about hurricane.I use Foremost STR policy for one property.I am about to switch to USAA (retired Navy) for another because they quoted a policy that was 3k lower than what we have.

Negotiation LeverageThe long market time gives you leverage—consider making a lower offer with seller financing.Point out the high rehab costs to justify better terms.Offer flexibility (quick closing, interest on seller financing) to make it attractive to the seller.Final ThoughtsYour best bet might be to negotiate seller financing for acquisition and use a rehab loan or private lender for renovations.

In my experience, the local banks are going to get you better rates and lower fees with their commercial loan products than the "DSCR lenders".

As far as what to tell them, you simply say that you're listing it for $1,700/month and are not willing to lower the rate.

Some of the best performing properties can have an occupancy around 60% for the year and sometimes lower.

Cross-Collateralization – A lender may finance the full $160,000 purchase by using your existing properties as additional security, lowering their risk and possibly reducing your down payment. 5.

Lower Alabama  

Often times if you lower the rate, the fees go up and vice versa.

I recommend using a lender that non-reporting to personal credit and can close under the LLC to keep your DTI lower and overall your personal liability profile more bankable.