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).

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).

Quote from @Addy Chupa: When analyzing deals, I usually include a 5% vacancy factor and 5% repair factor based on annual rent.

I do think the seasonal factor is huge.

Predictive Analytics: Historical data can expose future trends in value, rental demand, and market conditions.

@Ben Cochran I hope you have factored STR tax savings into your cashflow and ROI as it can be significant.

This could leave you exposed if you do not own your cabin under an LLC or corp (im not a lawyer so plz don't take me on this 100%) The upside might be that your insurance could go down with the sprinklers installed. 

As a non-resident, I’m finding the process challenging due to factors like high upfront costs, foreign buyers’ taxes, and financing limitations.I’d love to hear your advice or experiences regarding:•Strategies to manage the high initial costs and foreign buyers’ taxes.

What Ray predicted seemed to make sense, but unfortunately there were other  factors that  interrupted his predicted scenario. 

I can build cheaper than I could replace but there is a time and stress factor to consider.