Bob - I have five occupied padsplits under contract right now with Fernando Corona and have closed several with him this year.Normal DSCR brokers have issues getting this through underwriting - it's important to work with a broker / lender that fully understands how to get these to CTC.I'll PM you

If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan?

A grand negative cash flow is not the issue.

If the house doesn't pass the occupancy inspection before closing, the municipality can usually issue a temporary occupancy permit.

This is not just a racial issue. 

For big BRRRR projects, hiring a project manager or having boots on the ground can be worth the investment to keep GCs on track and catch issues early.I’ve had OOS clients who’ve been successful both ways—some met their GCs in person and others didn’t.

However, for major issues, STR insurance ensures you're fully covered.

Based on your numbers, and assuming you have a credit score high enough and have never filed for BK, you shouldn't have an issue getting approved for an HML to buy/rehab the property that I would estimate at about $370k-$375k (which includes 100% of the rehab costs).

Do you know if this would be an issue when it comes time to having my 5 year DCA inspection in ( mid 2025) as the property is only register with them as a 4 family?

Hi @Mindy JensenI had the same issue as  @Deborah Burian.