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.

Hi Jessie,You right that there is a way to partner with a US citizen in order to do LLC investing and take advantage of potentially lower interest rates.

Every owner wants low HOA Dues and then something expensive comes along and they all cry that it's not fair they need to pay an assessment.

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.

All the other markets in SD proximity are saturated or very expensive!

You could get a 30 year fixed mortgage and lower your LTV so that your monthly payment is manageable.

He is also in the most expensive real estate market in the US.

So I'm not sure why you would chase after lower qualified tenants only to make the same rental rate?

In the interim you are going to be stuck with a home in a stagnant neighborhood that will struggle to absorb operating expenses.

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 = $1875Rent = $2300 DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR loans can be used for purchases and for cash out refinances.