Criteria:6 months STR2 bd, 2 ba, Single Level House Furnished with yard, washer & dryer with A/C (inland not near coast)Pet Allowable 40 lb labodor 10 yrs, 40 lbs Red Heeler Mix and 6 lbs catNear VA Hospital, shops, grocery stores (at least 25 minutes commute)

If I go BRRRR I’ll refinance with a standard lender.Assuming we sell for $625k which is the ARV and market analysis I pulled, purchased for $345,500 and have $120k in reserves for rehab cost.

Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses.

If I can't find what I want second hand then purchase from local furniture store for heavy use items like beds/frames, dressers, dining sets.

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).

You will need down payment money, You will need cash reserves Money, you'll need closing costs money, and you will need to get a bank loan.

If you have the reserves to pay yourself, I recommend to not purchase the warranty.

I'm currently going through Pace Morby's book and video companion guide from the Bigger Pockets Store.

Make sure you have enough saved up not only for the down payment but also closing cost, plus some reserve in bank accounts or in other investment accounts!

Additionally I want to keep reserves for small cosmetic Renovations as needed.