But when you dig into the numbers a little deeper, you find that the borrower is lumping closing costs and prepaidsall together.

Most of my referrals come from a borrower that has fallen out or denied from a bank... 

DSCR loans are great options when the borrower has good credit and the deal is really solid.

And the cheapest capital comes from traditional lenders, who will want good credit score and financial wherewithal from the borrower.  

Rental properties are excluded from 50a6 law however lenders sometimes chose to follow it still as an overlay (additional layer) to provide protection because sometimes borrowers falsy their occupancy to exclude them from 50a6 law (like saying you dont live there and pretend living elsewhere when you in fact do as a borrower live at the aforementioned property).

@Bruce Schussler   I am always suggest my borrowers stop at 60% loan to value when utilizing this strategy.  60% is the loan to value where the loan would qualify for the best possible rate.

Now if you're just looking to make your credit report look better, that might work but not sure why that would be worthwhile unless you were just looking to borrow more consumer-type debt rather than hard asset notes. 

When an IRA borrows money, it needs to use a Non-Recourse loan.

The cash flow borrowing full cost via heloc will be marginal, possibly even negative if using realistic expense estimates (I.e. something near the 50% rule).  

Is there an issue with getting set up with one or more of the credit bureaus and starting to report on our borrowers?