As I studied earlier, the first thing you should do is marketing, then get a call and do a property analysis to understand if it's profitable for you, then meet with the seller and sign all the necessary papers, then if there is a debt in the bank we do a reinstatement quote, then do a title search to check if there are any hidden debts, if everything is fine we look for an investor or flipper and sign an assignment of contract with him and wait for closing to get our money.

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?

(income = 3 x monthly rent, Debt-To-Income, etc. can still be used!)

It does eliminate the need to add chlorine but the chlorinators (Pentair IntelliChlor) have a fairly short lifespan.  

In my case I sold off appreciated properties in a location I deemed as having limited future upside, and used the proceeds to eliminate all debt on the better located prime properties I wanted to keep long term.

The income doesn't really cover expenses plus debt service. 

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.

we did the first 3 in a 18 month period we used internal funds so no debt.. these were 350k to 400k all in projects.. so U need cash to be a spec builder or you need investors if you dont have cash..

if his income is strong enough and not as much debt, he should be OKHope that helps..

Debt will get paid down, rents historically will go up, and values historically will appreciate.