Ideally an out of  State investor, who will buy they property "sight unseen" and  who think they are getting great deal.

This would be very much like a borrower having the property rented at break even.So in short, a LO simply saying "he wouldn't finance" without running full credit and verifying income would be short sighted, in my opinion.July 3, 2022To Whom It May Concern,On November 14th, 2018 one of our holding LLCs, [LLC Name Redacted], entered into an agreement for sale on the property at [Address Redacted].

Hi Joseph, you would have to get the specifics on this particular DSCR pre-payment penalty, but they usually apply after there’s been a greater than 20% principle reduction. 

but I would set your sights a little more in line with reality so you can at least get off the ground..

There is also no open house for this property, I would have to buy it sight unseen. 

 I’ll also add that there are some instances where just making additional payments to pay down principle could trigger the due in full clause.

It is great to slowly have cities that do 1033, in order to establish a proof of principle of how this law can work, and encourage other cities to follow suit.

If you are asking if you should meet the tenant to show them the home, vs them applying sight-unseen, that is a very different answer and should be yes whenever possible. 9 out of 10 times if we secure a lease with tenants who apply to rent a property 'sight unseen' because they are coming from out of town and can't seen it in person until the day of move in [even if they have a friend/relative/agent do a virtual showing and walk through it themselves] it typically never ends well and the home is NEVER what they expected and are unhappy right from the start.

Try to always remember and apply the KISS principle (keep it simple).

Like you mentioned the remaining credit is applied to the principle if you pay off the loan or refinance (which is likely, since you are probably going to refinance to eliminate the PMI in the next 1-4 years) as opposed to a permanent buydown where you cannot recoup the permanent buydown aka paying points.