Purchase price: $425,000 Cash invested: $5,000 Helped my past client out of a difficult situation.

Hi Yinon, Most DSCR lenders will not typically require you to have a lease in place if the property was recently renovated or purchased.

I purchased a rental unit and did some private funding in 2016, and I will probably expand this business by doing more deals.

Examples of lists: lis pendens; homeowners who purchased before 2015; for-closure list; probate; to name a few.This is a numbers game so you'll want to build out a sizable list in order to have good lead flow.

We are considering the following options:-I purchase the property from my aunt – Perhaps we can do seller financing to reduce fees?

Yes quite a few of our 5,000 options have rate and term or purchase!

Keep in mind, it would be in your best interest to go for as high as 4 units on each purchase to maximize your door count. 

As an agent I often times refer to emotional appeal as a large factor on what drives purchase price. 

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).

This sounds like a home run and a great first purchase!!