Also, DSCR's typically come with 3-5 year pre-payment penalties that are prorated as the term progresses.

It's not worth that much fixed up (210k at the most) and I estimate it needs at least 80-100k of work.  

Typically, when funds acquire loans, they assume delinquency/default risk in exchange for earning a yield on their investment.Yet this would work differently – it’s a request to purchase debt alongside a corresponding put option/insurance policy.From the buyer’s perspective, as long as the seller remains solvent, with sufficient liquidity for any exercised options, it’s a risk-free investment.

I agree. if it was in a bad area where someone was murdered thats one thing, death/suicide, typically does not have an impact on the value of a home, definitely would not have a $300,000+ devaulation.

Typically, lenders will look for a DSCR of at least 1.0 to 1.2, but some lenders will lend at a DSCR of less than 1 but your terms might be less flexible.

Just major stuff that would end up costing me more than the cleaned up land would be worth.

Hey Austin, This is a recurring challenge observed in certain multifamily markets, typically those with 5 or more units.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Assuming that the property doesn't go up one dime in value, and assuming that it is a negative cash flow of $1000 per month from now on, 15 years later, you have a property that is completely paid off, worth $500,000.