Many first time investors get excited about acquiring their first rental and focus more on minimizing their fees/rate on the initial loan then really focusing on the exit loan.

That $40k to $50k in fees is the same if it's a $2m loan or a $20m loan, in this case $41k / $2.36m is the same as 1.7 points (but would be 0.2 points on a $20m loan, you can see why it's enticing for the bigger loans).

 There are a lot of factors to take into consideration when drastically changing the blueprint, especially from an under writing perspective.

I am trying to not throw a ton of cash into the fees as I’m already about 12-20k deep in.

But there’s other factors at play too.

Most property management companies charge a hefty leasing fee every time a lease is signed.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

(Only so they know I’m happy with their service, I get no referral fees or commissions nor am I related to them in anyway.)     

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.