This is a really significant strategy, because getting control of even two or three buildings can change the course of your financial future.

This criteria is for 1-4 and 5-8 unit programs.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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

But even the REIAs… are DROWNING in snake oil.

Even in the laundry room?

The loan programs you are reading about are PURCHASE loans with 10% down not refinance ones which reduces the loan to value even further down. 

One question - If the property is covered by the insurance, would they honor the claim even after the change of ownership?

I even have them be responsible for the appliances.  

We are new to creative financing, so any tips or advice or even pointing us to the right professionals would be great. 

To be fair, I think mid term and short-term are different audiences, and I think its highly reasonable to ask - even require, a midterm renter to partner with you and turn the ac up when the house is vacant for stretches of time.

I have a lot of cash saved up in a 5% HYSA currently and am wondering if it would be a good idea to prepay the principal by $60,000 (I would be financially fine even if I did pay this)  - which would lower the amount of interest I owe.