Lender 2 requires 6 months reserves. they want the borrower to document any large deposits and they want mortgage statements on any investment properties listed on the 1003.The point is different lenders do different things and it's important to not generalize as a broker, but interview the borrower, find their pain points and marry them with a lender that will minimize those pain points for a successful close. 

Without opening up a whole other can of worms, it's true that some sponsors charge exorbitant fees and don't bring anything close to that value to the table, but that's another discussion.None of this is to say that sponsors couldn't or shouldn't feel some pain when things go astray. 

Filling vacant spaces in your communities can be a huge pain!

I love hearing insight from hosts who have solved this common pain point.

Hey Muhammad, I'm going to be voting for Detroit every time here.You have low entry price points, a city that's undergoing major revitalization, positive cash flow, strong appreciation, and population growth for the first time in nearly 70 years.Detroit prices have doubled in the last five years and the momentum is just getting started in my opinion.I invest there and help others do the same.

Being close to expiration I’m going back and forth on what to do.This tenant has just been a pain.

@Sarah R Pullen I share your pain! 

I will say there are a FEW wholesale lenders that are a pain to work with but it comes back to the rep not knowing or the lender taking their sweet time to review a file.

I unfortunately feel 100% of your pain

I love it for the guaranteed rent, tenant stability, additional accountability with the housing authority and large demand for Section 8 housing without enough supply.With strong screening, I'm able to find great tenants and Im not owed any rent.Cons you will often hear is that the tenants are harder on your properties (doesnt have to be the case in my experience if you screen really well), the Housing Authority is a pain to deal with (this depends on a couple things - how well run your local PHA is and how good you are at handling process & details) and the extra inspections/red tape make the niche unprofitable (see what I said above about Housing Authorities).Done right, I believe Section 8 is one of the most stable & profitable.