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).

That 95% makes sense as an appreciation return, but for true CoC, you’d need rent income factored in.

Don't get me wrong:  cash flow is still an important factor, it keeps the lights on, it pays for repairs and upgrades.

Experienced managers can help evaluate potential investments by providing insights on rental demand, market rents, tenant preferences, and location-specific factors that affect leasing success.For example, rental properties need to be close to conveniences like major roads, shopping, and schools.

I DO NOT care whether he drives a Toyota himself.

Then remember to factor in vacancy and turn over cost.

Plus, your proactive steps, like cold-calling and Driving For Dollars, show your commitment and enthusiasm!

A nice portfolio is 10-40 properties, and yes you should drive by your own assets to check for broken windows.

In his experience, Memphis’s higher-than-typical rent-to-price ratio sounded great in theory, but property management turned out to be a huge factor-especially if you’re not local.

Also, an 8min walk vs 8 min drive is a big difference in the world of student housing.