Hey Everyone,As many of you know, Pittsburgh is a unique market with a lot of opportunities in neighborhoods where properties can still be purchased for less than $100K. However, many DSCR lenders have a minimum loan ...

It seems they were non-paying tenants even under the previous owner, who likely sold the property because of them.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

It's now almost impossible to get a mortgage with a FICO score under 560-580 range.Overall, the housing market has higher average FICO scores and more equity than the 2008-2010 period.This makes it much less likely we'll experience another Great Recession, but there are no guarantees.

And honestly, even a DSCR loan by itself, under an LLC, also doesn't provide much shielding. 

I exited the market due to the short term rental regulations - properties that are rented under 90 days are considered short term.

(To clarify, the metric I'm talking about isn't true cash-on-cash or cap rate, under strict definitions.

I'm thinking I can get a nice purchase price if I under cut the banks by 1% and offer 15% required down as opposed to the traditional 20%.

I spent a winter in Palm Springs and brought my plane down there and you talk about some wicked winds ..