Default rate - as you scale you will have a 10% default rate on loans.

Quote from @Diandre Pierce: Quote from @Trevor Finn: Hi @Diandre Pierce,That’s awesome you’re looking to scale into a mobile home park!

Ours are very simple boxes and we get economies of scale since we build multiple houses at once. hope that helps  

Also, for those whose BUSINESS (as opposed to just investment) is STR, they can scale successfully while their experience and knowledge of the industry may allow them the opportunity to uncover and recognize those few opportunities that will provide a much higher than market risk adjusted ROI. 

To scale, replicate this winning formula in similar markets, optimize operations for Section 8 tenants, and consider networking with like-minded investors to uncover new opportunities and partnerships.

My main goals with these initial projects are:1.Gaining valuable insights into the local market.2.Getting hands-on experience with out-of-state investing, particularly when it comes to remodels and managing from afar.3.Testing the entire BRRRR process to see if it’s the right strategy for me long-term.If all goes well, I’d love to scale up and explore multi-family projects.

If you plan to scale, I would get one right away on your first property.

Focus on “scaling quickly.” 

Keep in mind that DSCR loans are how most investors have scaled. whether its residential DSCR or commercial DSCR at 5+ units. personally, i like them better. few reasons why:1. seasoning period is only like 10-30 days vs 60days going conventional2. seller max contributions DSCR is 3-6% where conventional its only 2% max3.

Each property qualifies on its own economic merits (i.e. rental income covering PITI payments)This is one of the main advantages for DSCR financing, i.e. the ability to scale without any kind of DTI limit imposed by conventional financing.