I have warned countless people that the "new", "Cheapest", and "shaking up the insurance market" carriers typically come into the market under priced, have a wave of claims, then they either jack up premiums to survive or fire their staff to keep heads above water.

The only difference is the seller remains on title until we have enough equity to refinance or sell.3: Typically we don’t agree to balloons.

These properties typically do not have rent growth that keeps up with inflation.  

For most DSCR loans, down payments are typically around 20-25%, depending on the lender and the property type.

Even with the balloon, this is more typical for owner finance. 

If you elect to use a VA loan, that typically means you don't plan to put any money down.

Issues 1) even garage conversion ADUs in single family zoned areas typically cost more to build than the value that they add.  

And are they riskier than a typical conventional loan? 

Do they value nicer finishes and design or is that additional cost lost on the typical tenant in that pocket?

So, a house that would typically cost $100 per sq. ft. to build 5 years ago, is now costing $200 per sq. ft.