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.

This will be an expensive purchase. 

The lesson learned here was to meticulously calculate all expenses, including those often overlooked.

It's extremely expensive because the insurance companies that sell it consider these policies to be extremely high risk.

Hello Bigger Pockets community.Trying to get base line number of what the average % yearly operating expense per unit is for a typical class C property, 2-3 BR on a 5 to 20 unit property.

Is it better to get an expensive foundation engineer at a few hundred dollars / hour for an assessment, or a foundation / stone mason contractor in to take a look?

If you earn income as an independent contractor / entrepeneur, you report the income and expenses under schedule C.There can be a converesation down the road if you should set up an S-Corp.

We initially have been looking at out of state options (MI, OH, NC, etc) since our local market in Los Angeles is so ridiculously expensive.

I have always invested closest to home so all the little emergency things can be handled locally our network of Contractors Plumbers,Electricians are also all local. out of state plan on at least 4 tripts in the first year if renovating Air fare X4 Hotel /Motel Rental Cars all can drag you into a negative cost cycle. unless the size of the deal makes Travel expenses irrelevent add them to your buget forecasting. 

LLC in CA is expensive, and I probably deal most with out-of-state borrowers.