Photos are for illustration purposes only.

The numbers will be silly here, but it illustrates my point.

Rents go up a heck of a lot more than expenses do.As a quick illustration - my current "oldest" property is a 3 unit I purchased in North Beacon Hill in late 2016.

Owner no owner, they will follow you so the only thing your example illustrates is don't rent to biker gangs. or other crazies.  

there are tons and tons of threads on BP illustrating this. 

All figures are generated for illustration purposes only and do not reflect actual figures of any of our current/past transactions.Questions:1-If our debt package requires 3 months of prepaid P&I ($15,000), should we increase our Sources & Uses schedule to account for this figure, or do we anticipate the property to perform & simply borrow funds short-term from ourselves or 3rd party credit until operating incomes can pay back the short-term loan?

National Home Price NSA Index.I’ll quote:“Detroit saw the highest jump in home prices, according to the S&P CoreLogic Case-Shiller national home price index, in what was the ninth straight month of price gains for the market, illustrating the challenge of affordability for buyers dreaming of owning a home.The Michigan city saw a more than 8 percent jump in prices in October, the highest of the 11 major metropolitan areas that saw increases.

For illustration purposes, if the project cost is $100,000 and $25,000 would customarily be required as the downpayment, the equity amount becomes $31,000 in order to finance the additional $25,000 of project costs permitted by the lender.

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.

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.