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.

If you can make good money as a STR and at least cover your expenses as a LTR, then it can be a fruitful investment while minimizing your risk. 

Incurred claims and loss adjustment expenses were $20.0 billion".

Hi everyone, I'm a long time reader yet this is my first posting in these wonderful forums.In the scenario of a single member LLC owed, owner occupied and self-managed multifamily building, is it best practice to be paid from the LLC for self-managed expenses/labor?

My only reservation with Condos is difficult and expensive HOAs.

My expenses will be 20k a year and I will Gross around $75k.

P.S be careful getting sucked into sales events and buying expensive programs that promise the Universe!

You're asking for the bank for a "freebie" at their expense, which is really at everybody else's expense because the banks make up for their losses by raising fees and interest rates.Is your parent's home large enough so that they can rent out a room to somebody?

Hey i was wondering if anyone knew any dscr lenders that would be willing to take the 2nd position on a loan, i have a property in Oakland california where the seller is willing to finance 85% of the purchase price at 5% interest, The asking is almost 4.6 million on an 18 unit apartment, i dont have the down payment for the remaining 15% which would be 689,250. the seller is willing to come down on the price and at market the apartment brings in 41,255 per month, tenants pay thier own expenses. i tried calling a couple of lenders but they said they wouldnt take the 2nd position or would only finance until 90%.

Purchase at high LTV with realistic expense estimates will project initial negative cash flow if purchased at retail (off the MLS).