hey Joe, happy new year :) He is mostly into multifamily rental properties, so he focuses more into that but also covers other aspects of real estate.

Our approach is investor-focused, ensuring that each build not only meets but exceeds market demands in terms of both quality and potential returns.I'm curious—how have you found the transition to handling all three aspects of development?

This is an interesting project with several aspects to consider.

Velocity of money, or speed in which you can complete a BRRRR investment and repeat, is key to success, and refinancing with the shortest seasoning requirements is highly important.Loan terms and interest: Cash flow is also an important consideration for a refinanced rental property, so attaining a low interest rate, as well as other aspects of loan structure (term, amortization, or interest only, etc.), plays a big role.Generally, there are three main refinance options for BRRRR method investors: Conventional loansBank/credit union loansDSCR loansConventional loans are generally defined as loans originated under GSE (Fannie Mae/Freddie Mac) rules and guidelines and securitized.

Unless there is a heavy value add aspect, seller financing, assumable loan, or some other "deal".

If I NEED to sell within five years, this calculation provides insight into the real-world return that incorporates these vital aspects of the investment.I want a balance between steady cash flow and long-term appreciation potential. 

Appraisers give no value to the business aspect, so the property is sold at market value, even if furnished and even if there are future reservations on the books. 

Consistency and targeting the right audience were critical aspects I initially overlooked.

I currently work in construction and have some experience in all aspects of building.

Summary of Key Differences: Aspect DSCR Cap Rate Purpose Measures debt service ability Measures investment return Formula NOI / Debt Service NOI / Purchase Price Focus Cash flow vs. loan payments Income vs. property value Perspective Lender’s viewpoint (loan approval) Investor’s viewpoint (ROI evaluation) Role of Financing Highly dependent on loan terms Independent of financing Use Primarily for loan qualification Property valuation and comparison Conclusion: DSCR is critical when securing financing because it shows how well the property can cover its debt payments.