The idea is to limit your targets to just a few with multiple nasty problems that your principals recognize are bigger than they can deal with, hence ripe for you to acquire or control. 

When you refi in a year, you can always put more down towards the principal if you want.

I know i can have my employees write contracts I dont personally write them. but we are also not doing this contract for compensation we are buying it as a principal just like you would be doing Mike for your students. 

I get that it's the equity you are getting in the house (you only can include the principal you are paying down) - but that feels as if it should be included as a part of your investment.

I’ve been paying off extra principal each month but have started thinking it might make more sense to save up that amount and do a recast when it gets large enough to increase cash flow.

What I see is there are many people from abroad who just want to park money here vs their home country due to inflation or some other reason who are willing to take minimal returns in exchange for principal safety. 

I never ever bought anything or would buy anything without the same principals I buy or lend on today IE there has to be equity day one.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

The general principal of refinancing out of a 4.32% rate and into a 7.5% to 8% rate makes no sense in really any context.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).