A lot of investors are flocking to Memphis for its solid cash flow potential, and you can typically see strong returns (8%+ cash-on-cash) here, which is a huge draw.The job market is another factor.

Most of our investments we look at IRR (time value of money) to determine which investment is a good fit for us at this time - which factors in returns, risk and time of investment - is it a short term investment we want to get appreciation play or long term fixed income investment.

Many buyers who see properties make the mistake of buying an investment property as if it was a lifestyle property.

This shock factor often leads them to question what other elements of the house may need updating, even if the paint is a relatively easy fix.

Of course you can manage for this and set aside funds however I suspect the risk and loss factor was/is far greater than the sponsor realized when they go in for this noble pursuit of helping homeowners save their homes..

I have 2 factors that I know play into it, but there's always more beneath the surface.

This helps you identify which factors drive the best returns and make confident, informed decisions.It’s also important to test your numbers with scenarios like higher vacancies, unexpected expenses, interest rate changes, or rent adjustments over the years.

To answer the question about your DTI, if you are going to be utilizing a DSCR loan for any new investment properties, your income/DTI is not going to be factored in. 

That will play a factor for qualifying.

And in REI, correction happens when inventory increases among other factors.