Hi Chandana, This looks okay, I would say you could definitely get a better rate with 30% down on a DSCR loan.

The home is only worth about 85K so I’ve had a hard time finding a lender willing to work with smaller loans or smaller appraisal values.

The partner in question has multiple times the loan amount in his bank accounts/liquid assets.

However when I think logically about depreciating damages I use this as an example:If I built a house and rented it for 28 years without making any improvements, the tenant could burn the house to the ground and not get charged one penny because the entire house was fully depreciated down to $0.

She did not qualify for a mortgage loan to build on her own so he became a coborrower which meant he had to be on the title. 

Did a home equity loan to pay for the water & sewer lines, removing knob and tube, some new flooring and some plumbing fixes. 

The median home price in Cape Coral was $385,000 in September 2023, presenting a good investment opportunity. 5) Development Potential: Cape Coral continues to see ongoing development and infrastructure improvements, including new commercial centers, parks, and recreational facilities.

These improvements alone in the area where the property was located would have been as much as the asking price for just the land itself.

My brother and I would like to be co-owners to the new property but our contribution to the purchase of the new home is by way of investment loan, so let's say my parent's home sells for 500k and they want to go in on a $1M piece of property.

You'll have to find an answer based on zoning, demand, and your ability to control the appearance of the additional improvements - you don't want to create a junk yard behind your triplex!