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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

As others have said, the location is a big factor in MTRs, but so is the clientele you are going after.

Typically, we see anywhere from $600 to over $1000 per unit (maintenance and turn costs)  depending on these factors. 

For the 700 credit score you could take 1 month's rent as a deposit but for the other 2 you could take 2 months (as an example) due to the risk factor. 

@Michael BertschAs a general rule, we only leave a fireplace functional unless it has a sealed, externally vented, gas insert ... and, even then we may disconnect it.Check with your insurance provider and see how unhappy a functional fireplace in a rental makes them.

The high HOA fee is already a factor, so ensure you’re comfortable with the overall carrying costs.Focus on the Land Value: Since the lot has development potential, you’re looking at this as a long-term investment.

All of these factors make the city a great place for BRRRR investing - so good that I started investing here remotely from Texas.

See, when building a portfolio, appreciation is key, and the #1 factor that will dictate things.

There’s also a scorecard that gets released based upon many factors.  

That 95% makes sense as an appreciation return, but for true CoC, you’d need rent income factored in.