It is the interest rates at which banks lend to each other and is short for Secured Overnight Financing Rate. 

Give me a shout if you'd like a rate quote for your DSCR loan.

The interest rate is not special nor is the 20% down (80% LTV).  

That strategy, however, is going to take a lot more up front work than just posting a bedroom for rent for $900/month (or whatever the going rate is in Richmond) on airbnb and FF.

It's debt you'd still have to pay back, but at least you will not touch one of those two amazing interest rates. 

Our cash on cash return is essentially infinite as we make money on the delta between the yield of the discounted note that we purchase and the interest rate we pay to our passive private capital partners. 

The house is a new construction in a Class C neighborhood.The tenants pay late rate ~50% of time, they damaged part of the garage, they have people not of the lease living there, and they leave trash in the yard.Part of me wants to keep these tenants because:-They do pay eventually-I don't want vacancy-The turnover costs could/will be high-How much more damage could they do?

Once you are an experienced investor and know rental rates and costs you can provide value to clients. 

Our occupancy rates have been 65-95% during the peak.

If someone offered to finance this house to you at your current rates if you put down $250k would you do it?