Ditto to all of the above.  85% is very doable with a strong credit score, strong dscr, but yes, the rate is going to be higher because of the higher leverage.

I did lock in a decent rate, so that is in my favor.

Quote from @Sebastian Geiman: Hey everyone,I'm currently exploring note loan investments and looking to take a deeper dive into simulating different scenarios with variables like origination fees, interest rates, and exit fees.

I was just quoted 8% on my heloc, if that helps you at all with getting an idea on interest rates.  

**South Mountain** - Still relatively affordable with growing appeal to first-time homebuyers2.

I was playing with the idea of selling my condo, taking 300k of the equity to put a down payment towards a house listed at 660k.I'm assuming the reno will run $300/sqft and going in with the assumption that phase 1 will run 750k (figure the expansion of the house will have to wait) for the gut reno.I assume/hope (but definitely not banking on) that I will be able to refi in 2-3 years at a lower interest rate; if not for a lower rate.This will likely be a family home for the next 5-10 years at LEAST so investment value isn't quite at top of mind ATM.Questions:Even if it's not for lower interest rate, do you feel it's advisable to refi to remove the 203 loan in the future?

You get the best of both worlds in that way: No seasoning to pull cash out AND the conventional rate/costs and no pre-payment penalty which are all better then DSCR loans.

If you want to test you're own theory there is no harm in putting up the rooms as separate at a discounted rate and see if you end up with some bites. nothing wrong with throwing the add up and testing it. 

Loans Not Owned by Freddie or Fannie If your loan is held by a private lender or another institution, it’s important to evaluate the interest rate.

Invitation Homes’ stock has traded at a particularly large discount to NAV since interest rates began to rise in early 2022, but the gap has widened by 10 percentage points in the past year.