It’s a matter of Risk Reward.

I can give numerous examples of California investors I know losing money from buying in "cheaper cash flow on paper markets."  

I even named them the #3 non-seasonal market in the US today in our BiggerStays weekly newsletter here based on numerous metrics.

I wouldn't call that a true "DSCR Loan" - especially considering that a ground-up construction property won't have any cash flow so DSCR would be negative or 0 numerator if you'd try to calculate it

There are numerous value adds such as traditional rehab, development, change of zoning, TIC, etc.

Starting over with a new property manager with a new listing can be a positive, as Airbnb and others reward new listings with additional exposure, especially if you are headed into the busy season.

It works great for wholesalers who sell the deals to a flipper, so a flipper can reap the rewards by going the extra mile and conducting their own marketing

On top of that, we’ve secured numerous deals with 0% interest through seller financing, which has been a game-changer for cash flow and long-term profitability. 

When coming from contribution, people sense your sincerity...and the world often rewards you by bringing you leads. 

Rehabs are such a rewarding way to get into real estate—that's how I started too (flips)!