IN case the house you bought needs urgent repairs because of some natural events .

***You'd want to make it worthwhile to foreclose and also be safe***If someone is an A Paper borrower just needing to close fast, some of my investors will go 75 LTV.You can also always feel more comfortable on a purchase rather than a refi, as people are bringing skin into the game, not trying to exit.

Definitely the way to go on rental properties if you are an out of state investor NOT looking for an enormous undertaking with a BRRRR type scenario or investment of that nature or part time or full time job.

Natural to be nervous, but you need to embrace that.If location is truly great, learn to optimize the cash flow or be prepared to weather a minor cash flow storm.

My second slow season I decided not to rent it out because the propane bill to heat the home wasn’t worth the hassle, this last slow season was record snow and many homes lost power and heat for several days, it was categorized as a natural disaster.

The author and article suggests to utilize the climate risk data before committing to an investment and be familiar with specific risks in your area—whether it’s floods, wildfires or heat waves.They recommend these valuable tools to assess these risks:FEMA National Risk Index – Provides a comprehensive overview of natural hazards across the U.S., including floods, earthquakes, and severe storms.USDA Wildfire Risk to Communities – Offers detailed insights into wildfire risks for homes in specific regions, particularly useful for properties near forests or dry areas.Risk Factor – Analyzes flood, fire, and other climate-related threats for individual properties, giving you a risk score.Climate Check – Delivers property-specific climate risk ratings, covering heat, drought, fire, and floods.Do you consider environmental factors like flood and heat when investing?

I have found that by adding value, people come to you naturally over time. 

I put $2000 down to have skin in the game.

Skin in the game.

DSCR loans by nature require that there is no deferred maintenance and no construction needed.