The former is valued based on the income approach and the latter based on comps. 

A reverse mortgage can be paid off, but the parents may have trouble obtaining financing as typically a reverse mortgage is received when borrowers have trouble making monthly payments and have little income but lots of equity.

.- We've upgraded 75% of the units with fresh flooring, paint, cabinets, countertops, and appliances as needed.When we took over the property the 16 units were producing around $9000/month in gross rent.I just checked our rent roll today, and we just crossed $17,000 in gross income monthly!

@Terri B.To increase your Cash on Cash return on investment, it may be beneficial to use debt to obtain income and asset appreciation with less cash expenditure.

Not for me, I wouldn't want to be forced to distribute 90% of taxable income  to shareholders.Private fund?

Once you complete the property, you could then do a DSCR to pay off the initial fix-and-flip as then you will have the rental income to show for it.

But the potential upside of the more expensive building is massive, plus you get a higher overall ROI when you factor in all 4 wealth generators (cash flow, loan paydown, appreciation, depreciation).

When I calculate an offer on a property, I typically look at the potential rental income and subtract from that all operating expenses such as taxes, insurance, management and maintenance.

Quote from @Linda Roberts: I won't even allow a cosigner from another state.First, you are putting yourself in a tough situation with three or more unrelated tenants, but that's a discussion for another day.Second, I won't allow a renter without income unless they pay their first three months in advance.There are too many variables for me to make a decision.

I'm looking to get a loan for my first non-owner occupied rental property but my current lender is telling me my debt to income ratio is too high due to my student loans and mortgage.