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.

Market demographicsYou never know how grumpy a field agent auditing you will be. 

. - there are numerous ways to achieve sweat equity from boring but true rehabs, to development, to various localized sophisticated options

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. 

A matter of fact, I had one a decade ago, a full IRS field audit, and passed owing $0.Eventually I want to have a couple hundred properties, and more installment sales.

I took my first job out of college in a similar field only to learn that it was a pretty soul sucking existence.

A guy I know opened a restaurant and got numerous bad reviews back to back.