So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

If you think this distinction is unimportant, consider what happened to investors who placed their IRA funds with American Pension Services,—an administrator whose founder mishandled their money causing a $22 million loss.

I am a very active realtor in both the Kansas and Missouri side of the CASEY metro, and I frequently work with local and out-of-state investors, helping folks find small multi as well as STR compatible homes.

Start by networking with local investors through Augusta REI meetups, BiggerPockets forums, and Facebook groups.

It takes a lot of phone calls and asking around, but you can normally find a local or regional bank that is willing to work with investors on these types of properties.Mike

Consider offering equity partnerships, debt financing with profit sharing, or preferred equity, where investors get a fixed return before you share profits.

Build a strong brand, leverage content marketing, and establish a personal brand to attract investors and build credibility.

It’s a longer-term game, though, with higher upfront costs.I’d say spend some time researching your target area and connecting with local investors or meetups—they’re goldmines for market insights and networking.

And to answer your question, yes, DTI issues are usually why investors start using DSCR loans. 

* What is the best strategy for first-time investors: Own or Arbitrage?