Throughout 2023, we have published several articles on DSCR loans, introducing the BiggerPockets community to how interest rates and terms are determined, giving answers to frequently asked questions about DSCR loans and talking about exciting new developments and expansions of the product, including DSCR loans for five- to 10-unit multifamily properties.This article will cover another big aspect of DSCR loans–specifically, what documents you will be expected to provide once you have decided to go with a DSCR loan.

I'm based in Bucks County, PA, but I frequently visit Ocean County, NJ, and Southwest Florida.

He does have a couple half siblings, but they are in another country and not in frequent contact with his parents, so from their perspective all they would see is that the parents are living in an investment property that we own, and they are paying rent.  

You probably recoup the 5k in ARV, but Old North Milwaukee is an economically challenge neighborhood, so manage your expectations.Avoiding frequent turnover, tenants who don't pay, damage property or cause other issues is the name of the game to achive long term profitability.

It is a great tax benefit and, as any great benefit, it is frequently abused.

Hi Julia - I'm a tax lien and deed investor in the Austin area and frequently attend the Bexar, Williamson, and Travis County auctions. 

Lower end tenants mean more headache:More frequent turn overHeavier turn costs/higher wear and tearSlow paymentsLonger vacancy between both the turn over time and finding another qualified tenantBeyond these factors, as others noted, a full unit renovation will cost about 15-20k if you want to do it pretty nice.  

Wherever you invest, I recommend hiring a property manager who is highly knowledgeable about Section 8 and its frequently changing guidelines.Putting down at least 20% ensures the best rates and avoids any PMI payments.Good luck!

@Luke Bricca Yesss...my heart is really in renovating and giving houses a new life (did that with my own house pretty much) but alas I live in the Bay Area so there is nothing I can afford here....or anywhere nearby really... plus a small kid (so travel is hard), so hard to travel frequently and supervise a contractor, etc. 

Frequently the price is higher than a consumer would get if they contracted directly with a contractor.