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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

They have a formula based on the property and its features as well as the tenant's income and expenses. 

I ASSUME you’re talking $400+ in extra expenses for providing water, power, sewer, gas, internet, communal area cleaning, and exterior maintenance.

It's a great way to keep your license active without the usual expenses.

Some markets can support that expense and others can't. 

I’m looking for a cash out refi for higher than 80% LTV due to the expenses that I’ve already put into rehabbing the property.

i understand a true duplex might be a lot more expensive, but i think it's at least worth continuing to research and keeping an eye on.and sticking to my original point, OOS can be tough. 

I created an LLC to collect rent and manage any expenses related to the property. 

Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

Best of luck with the appeals, while PPMG handles all the day to day, we can do we can to limit expenses on our end.