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).

Minimizing CostsHolding a real estate license comes with ongoing costs, such as licensing fees, MLS access, and association memberships.

Pairing that with relationship-building will help you uncover off-market opportunities and find local experts who can guide you.For meetups, here are a few ideas:Indianapolis Real Estate Investors Association (Indy REIA): They have a mix of virtual and in-person events and are a good starting point for networking with other investors in the Indy market.Louisville Real Estate Investors Group (REIG): A similar organization for the Louisville market, with educational and networking opportunities.Check out BiggerPockets Meetups: Many cities have local meetups organized by investors active on BiggerPockets, and they often include virtual options.Facebook Groups: Look for local investing groups like "Indianapolis Real Estate Investors" or "Louisville REI."

Additionally, I understand the risks associated with obtaining hard cash and working with hard money lenders, including higher interest rates due to the short term nature of the loan as well as the risk involved.

I am very involved in our local real estate investor association and agree that in this central Florida market there are an over saturation of STRs as well.

If it's just a money grab and there is no desire to associate with the aforementioned, you will most likely be on the losing end and feel very negative about the program.

Wish you the best.If I was you, first step is evaluating costs associated with doing MTR and comparing with potential rental income to see if it makes sense to do LTR or MTR.

It is also important to consider the transactional fees associated with originating the HELOC, whether an appraisal is required etc.

To your point, there is some risk associated with buying a note, but that is why we are selling them at least 25% under market BPO value.

Join a local landlord association.