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).

We recently found a condo willing to do owner financing at a 4% interest rate with a purchase price of $500,000.

I probably have less answers for you, and more questions...We don't really know your experience level, so my first question is, do you realize you typically have to have about 20-25% "skin" in the game for this purchase?  

Hi Sam, Like my colleague mentioned, we have assisted many W-2 high wage earners that have purchased STR’s to add to their portfolio.  

Taking a bit over a long period of time is better than taking it out all out at once.Furthermore, you can have 80% LTV if you purchase property in your personal in your own name.LTV inside of a SDIRA is somewhere around 50%

Purchase price: $139,000 What made you interested in investing in this type of deal?

For that reason, I am looking to purchase a duplex or a single family with either an existing ADU or potential to add one. 

I think I've seen that you can purchase really good leads by the very few that are highly vetted, but does that work in the MHP space and anyone familiar with companies that do this?

I came across DSCR loans, and was wondering if refinancing the duplex, purchased two years ago, would help with our DTI when it comes to purchasing a new house hack.

I would never consider purchasing in an area where real estate doesn't appreciate over time.