It’s a good idea to confirm you have a path to record title in a way that’s financeable, even though this isn’t a standard fee-simple sale.The big question is whether it’s reasonable to pay a market-rate price when you’re not actually scooping up the land.

@Robert Piercethat's pretty standard

Quote from @Steven Stanimirovic: Hi Rich,The prepayment penalties you’ve encountered are quite standard with DSCR loans, as lenders often structure these penalties (commonly called "step-down prepayment penalties") to offset the risk of early loan payoff.

This allows you to buy using a LO, but you don't have to sell to the tenant, which allows you to have a standard tenant in place. 

(investments structured with principal & interest payments is part of what fuels the snowball at the beginning)If you're looking for a standard return rate, yes you're usually looking at between 8-10% return on Prosper (Tardus is not affiliated with Prosper in any way and does not recommend specific investments)Hi Lindsey.  

Only thing better would be initial deposit and then paid in full upon Certificate of Occupancy and punchlist complete.Of course, standard items should also be checked: licensed, insured, willing and able to pull all required permits, reference checks.I would also commonly avoid the cheapest bid you get.  

Look into local rental demand—perhaps that area can support a short-term or mid-term rental strategy instead of a standard yearly lease, which might boost your income.

I could likely see many things from the TCJA being made permanent, mostly procedural items like the higher standard deduction and child tax credit (Plus eliminating exemptions).

The payments tend to be lower than a standard cash out refi, so if you end up in a tight cash spot, you have the flexibility to pay less for a bit until you get your bearings again. 

Is this structure standard, though, in terms of capping investor returns at 12%?