One theory is that the investors see population increasing in these areas and are willing to deal with the ridiculous local laws This actually isn’t even necessary true, the placest with the biggest per capita housing production or “investment” is in the sunbelt, the expensive cities produce a shockingly low amount of housing, obviously zoning laws play a huge role in that as well, but even when you looking up institutional investment in existing properties it’s mostly in the sunbelt, most people who own big buildings in hcol areas just bought them decades ago when they were much cheaper, even D.C. has has like a 4-5 fold increase in value in some areas in the last 15 or so years.

For many properties locally, it's cheaper to rent than to purchase.

At least for us that is a bit of a cheaper loan. and when you say  "Once this renovation is done we would sell our current house and look for the next project.".

@Archie BarrettJust wanted to say that there are MANY reasons to consider a DSCR loan vs a conventional loan, not ONLY if you do not qualify for a conventional loan due to DTI.Possible DSCR Benefits:Can do cash out refi prior to 1 year seasoning of the mortgageCan do cash out refi with no seasoning of ownership (with some lenders)Can do a loan with much less paperwork (this comes more into play every time you add a property)Can close on a DSCR loan directly in your LLCCan have your DSCR loan not report on credit (depending on the lender)DSCR loans can be cheaper than conventional loans for many credit scores and down payments.

Probably not, but given vertical is cheaper and fits the neighborhood, I think it's the way to go here.

Unlike other services, we can actually skip LLCs and trusts and cheaper than the rest of all the other services mention in this thread.

was doing something I wanted to do and was willing to coach me through the process.Yes, there are a ton of programs out there- free and cheaper- at the end of the day, you decide what’s the best ROI in terms of money and time.

Trust me, an extra couple of weeks of vacancy to find the right person is much cheaper in the long run than missed rent and eviction costs; and that doesn't even include the extra stress and anxiety from it. 

Hindsight is 20/20 of course but this is advise borrowers to go the conventional route (assuming they can qualify of course) because it is a cheaper loan then FHA with the MIP for life. https://www.bankrate.com/mortgages/remove-fha-mortgage-insur... 

It was much cheaper than what I qualified for.