Quote from @Patricia Via: Why lower your standards or add risk by accepting tenants with quirky history?

Conventional is still the gold standard, but DSCRs are a close second for good deals. 

So in your case thats standard or frankly a bit better than those that force equity and have money.. the idea though of selling these to those that dont have the 50k in cash or ability to get it is what puts these neighborhoods at risk and to ask and investor to step in and buy the asset and then resell it for 3X that investor is taking a huge risk ..

When you engage with a new vendor, have it be a standard procedure that this worksheet or packet be filled out with documents provided before you will engage their services.

You all went CHEAP and have hopefully learned a lesson:)Area where I was vetting them the prices were standard 10% monthly rent with $75 min and 50% first month rent.  

@Warren BellHi with my recent purchase I used the standard CAR form and the people above nailed it with regards to "no assignments" language Line 26.  

They handle his 150ish doors, and he has high standards.

Also, have you made any significant alterations to the property or if it were put on the market today, would it be indistinguishable from a standard 4-bedoom house (are there any extra walls for the SRO, constructed locks/barriers etc.)If its a standard SFR and the leases are very short term - there is a path that you could refinance this with a DSCR as basically a Short Term Rental and then potentially change strategic course back to SRO if needed at a later date

The VA is a meticulous about the condition of the property as well, so make sure it meets livability standards. 

Originally posted by @George Despotopoulos:Short term is usually referred to as hard money or bridge loans. 3-6 months is pretty short, standard is 12 months.