@Andrew Postell, I pulled it off the GRM site, which may not have updated ratios: "DSCR loans require borrowers to meet a minimum DSCR threshold, typically around 1.25...." https://www.rate.com/resources/what-are-non-qm-loansI spoke with a loan officer who said it may be lower now to reflect the market, so you may be right, but I am awaiting the approval and don't have the final ratio. 

Average underwriting is 50%-60%, anything lower than that is thrown out as a bad deal.

Note It is an old brick  building with old school foundation that had a few inches flooding on the 1st level recently that needs to be repaired thats why I'm weighing all my options.All advice welcome thx

@Kalei WhiteNot sure how the numbers look just with the surface-level info in the post.

While this property is not acting as a cash flowing investment property, it has served the wonderful purpose of showing us how to navigate the real estate market at a base level.

The best way to do this will be with a DSCR loan for short-term rentals, but this will come with slightly lower leverage than a second home loan (90% vs 80% LTV).

Many investors from the California area buy residential homes locally but invest in the mid-west because of the yearly cash returns making more sense in these lower priced markets.

I am interested in learning a high level view of what these look like from an org structure standpoint, as I understand the gist of the business strategy in general.

You didn't say what your credit was, but if this is your option based on credit, it might serve you to wait a few months until your credit is at least 660 where you have MUCH lower costs available to you.

The formula for calculating DSCR is straightforward:DSCR=NetOperatingIncome(NOI)/TotalDebtServiceNet Operating Income (NOI) represents the property's income after operating expenses.Total Debt Service includes all debt obligations, such as loan payments, property taxes, and insurance.A DSCR ratio above 1 indicates that the property's income is sufficient to cover its debt obligations, while a ratio below 1 suggests insufficient cash flow to cover debt payments.Lenders usually have specific DSCR requirements, with higher ratios indicating lower risk for the lender.