Lenders will lower the LTV on this type of collateral to protect themselves.

For $200 more than your mortgage-will that cover your expenses (taxes, insurance, maintenance, etc)?

@Briana Cialkowskitwo reactions:1. can you post the numbers that you're using for expenses? 

To make a long, expensive story short, we discovered that builder failed to insulate an entire 3rd attic space and didn't seal wall cavities up in the main attic or insulate chases properly (Inspector failed too). 

I was also thinking that this may lower our office building payment which is good for our personal cash flow with other investments moving forward.Thank you all for the advantages/disadvantages and I hope this doesn't come off as an irresponsible thought.Kegan

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 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

In summary you need to be committed for the long term which can get tough when rent barely covers PITI at purchase and you get a large cap expense.  

This allows you to maximum profit on the sale and lower the payment of the loan, just make sure the ARV or sale price is good. 

The amount of time the PM would take to track all the fiddly expenses wouldn't make it worth it in my opinion.

Now, other tax incentives like simple business write offs for expenses to set up the properties as an STR that’s most likely still something you can write off against your rental income gains.