I'm sure that is true, because most mortgage companies aren't going to go searching for issues when there aren't problems - but in the truest sense of the word this is loan fraud and I'm just not up for it in my portfolio.I did hear from a friend of a friend type that she was able to close a subto with a small local bank somewhere in Georgia (property was also located there) because of a long standing relationship with the bank. 

@James Trobaugh in either situation, you could use an FHA loan.

Technically, not all lender would approve a DSCR loan for someone who has not owned their primary but there are some lenders who do lend to FTHB a DSCR loan.

How far away are the downspouts from the window and are they extended away from the house either above or below ground?

We're currently saving up enough for a 20% down for a conventional loan to bypass having to pay for PMI and MIP, as these 2 additional monthly expenses are a "make it or break it", in finding a cash flowing property in California.I would love to know what your story was like when you first started your real estate investing journey!

You can get a second mortgage to go with the assumable loan.

Please keep in mind that we do not want recommendations for strategies involving financing, as we want to get some core holdings that produce immediate cash flow and not have that NOI reduced by loans at current rates in light of the current cap rates.Also, just FYI, we are in California and no way to get around that residency in time to reduce state taxes.

This will be the first loan for me. 

@Arman TannuThey look at it from the loan is not assumable and possible due on sale.

Also a huge benefit is you can get a non recourse loan and not have to pay UBIT tax on the profits made with the leverage.