Purchase price: $190,000 Cash invested: $25,000 Bought this property using HML, total cash in is actually $87,000 including the down payment and lender fees.

As pointed out above, I don't thing that you are including all of the expenses.

The loan program qualifies the property by using Rental Income to cover the Total Mortgage Payment which includes Taxes, Insurance, and HOA.Regards,Michael Taylor

However, if the $500/mo does not include maintenance, vacancy, capex, and property management, then it probably actually makes your cash flow negative.

The whole self management thing is nice in theory but when you get above 4-5 units, the number of issues that come at unwelcome times becomes frustrating. it's not the amount of hours, it's the persistent distraction / attention required.

I am good at the paperwork required and a self starter.

My personal houses are self builds, with no mortgage - one off grid and one on family land.

Target rent is 2200, my expenses will be around 2050, so cash flow of 150 (not including vacancy).  

DSCR is great for Self-employed borrowers or business owners who write off a lof of debts and show little income.

hmm...well, as someone who has 20+ million in warehouse lines of credit I do know that it would still be fraud not to include those loans on the application/quarterly financial statements that are required for business credit.