I wouldn't automatically assume DSCR rates will be significantly higher than traditional financing - that's not always the case.

In our still relatively limited experience, seller financiers are usually looking to get a higher asking price in exchange for the favor of the private loan. 

In all major cities, especially ones with a higher crime index, unless you study the market and know it, I would never rely on someone else to choose a block.

The higher your equity gets on a single property, the more you are losing money. 

Mortgage lenders will qualify you for a higher purchase amount for multis than they would on a single, because they will count the rent you will be making on the other units as additional qualifying income for your loan application.

Some areas will have lower cap rate but higher appreciation and some will have higher cash flow but lower appreciation. 

Hey @Josh H. it's higher risk and def also higher reward.

The down payment might be a little higher, but it will be a much longer-term loan that you won't have to worry about coming up with big payment in month 24 and it'll be amortized over a much longer time period (probably 25-30 years), so the monthly payment could actually be lower. 

However, short term rentals are much less passive than long term rentals and are essentially a hospitality business, which is in and of itself required a whole additional layer of knowledge and expertise.With regard to your question about private lenders, it’s important to draw a distinction in terminology between “private” and “hard money.”

Most 1-4 unit real estate investors are using DSCR loans right now for any buy and holds while flippers lean on higher leverage bridge/fix and flip loan options with higher interest rates.