He has no financing contingency in the deal because he's not concerned about getting financing.With that said, it does give me significant peace of mind knowing a traditional lender is likely to use a max 90% CLTV. 

Hey Christian, Most DSCR lenders have a minimum loan amount of $75,000.

When they leave, they usually either have one of their tenants take over some of the maintenance responsibility, or they just convert it to a traditional rentals and use a PM.

For the first several years, financing was limited to conventional means, whereby you would have to settle for qualifying for a traditional home mortgage, or non-QM “2nd Home” mortgage, qualifying through your own personal income and DTI.The ProblemThis type of financing makes it incredibly hard to scale, as without being able to count significant STR income to your bottom line, banks would judge you unqualified to add properties and mortgage debt because your W2 or long-term market rent (typically half of what you earn on an STR) was too “low.”

$60k down from liquid cash and traditional 30 year fixed How did you add value to the deal?

Christian, thanks for the advice.

@Marcus Auerbach I agree I wasn’t expecting this price tag either I just had the first quote and this was from more of a residential service business -I’m sure with high marketing costs passed on to traditional homeowner customers.

I've heard about hard money, traditional, HELOCs, etc. and it makes my head spin!

Message me directly and I can share our overview video so you can see the advantages over traditional turnkey and regular rentals.Interesting model.  

Being a young family fresh out of college, our student loans have strained our credit to the point where traditional lending is not an option.