A common misconception is that real estate properties under $1M have a smaller tax basis and therefore do not benefit from a cost segregation study due to the associated fees.

This decision will also be impacted by your interest rate.

Rates are a bit higher but if you can leverage up to do more than 1 flip at a time, it will be worth paying the lender fees.

Right now, I’m seeing max LTVs closer to 80% on purchases, though before COVID, we sometimes went up to 85%.Also, keep an eye out for lenders who promise amazing terms but demand large commitment fees upfront.

In this case, since they are borrowing their payments, these would get added to the principal balance each month, and interest would be calculated on that.If, for example, the interest rate on the note were 10%, they would implicitly be borrowing their payments at that rate.

as is prop value 75k and minimum loan size of 50k. as long as its turn key 30 year fixed is available. yes there are some fees and rate will be a touch higher. if it cash flows get it closed.

Quote from @Ryan Mcpherson: Moved to Austin for work and purchased a home in 2021 with just under 4% interest rate.

There are plenty out there with fair rates and lower fees.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

You open yourself to much more risk in not being able to finance out of it and being stuck with hard money and those fees/penalties.