Since this is a DSCR loan and I already provided account statements with proof of funds and my mortgage statement for the principal residence, I didn't expect much more would be required.

With real estate, some of the biggest pluses aren't seen in ROE (or ROI for that matter, at least until you sell), namely appreciation, principal paydown and depreciation as a tax write off.

And you’re still getting principal pay down. 

The lower of the current rents and market rents are used to determine DSCR, but some lenders will go up to something like 120% of market. 3.DSCR is calculated with principal, interest, taxes, insurance and HOA (if applicable) vs rents.

I tried looking into it from the forums, but the financial advisors I found start off at 10K-- we are not earning that much that it be better if we use the 10K to pay some of the principal of our mortgage.

After 5 years, I will have only paid interest, the principal will not have changed.

For those of you trying to “Time the Market” or trying to figure out the “Perfect Time to Buy”, either because you believe home prices will drop or because interest rates will drop (which they will in the very near future), I have a scenario for you.Consider these two scenarios, in both cases you have the EXACT SAME Principal & Interest Payment1.

They can have a prepayment penalty and higher out of pocket costs at times as the main drawbacks.

Location, location, location is the key.I am not as convinced that a limited season is a huge drawback.

Many lenders have brutal release fees to break up a blanket loan these days; many are 125% of the allocated principal balance.