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).

This property has a ton of deferred maintenance but I'm purchasing it well below market value and I have a decent budget. 

But after working with the family, we purchased it for $42,000 and got to work.We had some unique challenges, like dealing with one of the heirs who wasn’t very cooperative and required a payoff to sign the paperwork we needed for clear title.

I’m getting re-acquainted with the BP community after purchasing my first house hack in the Pittsburgh area, and would love to make some connections with other like-minded young professionals and investors in the area.And if there’s anyone out there who’s just getting started and looking to make the jump to buy their first property, I’d love to offer up advice, share my network of contractors in the area, and answer any questions that I can from my experience over the last 6 months!

Purchase price: $255,000 Cash invested: $51,000 Second property, bought soon after the first multi-family.

In Spain, this is usually seen more as a barrier as people rather would invest in individual units (less purchase capacity needed), but by rethinking the setup up it matches the criteria of a multi-family deal.

This area has a unique mix of affordability, beauty, and rental potential that makes it a standout choice for real estate investment.

Assuming you purchased in your IRA for cash as most do, then there's nothing to deduct or depreciate because the income is non-taxable inside the IRA already.

Purchase price: $240,000 Cash invested: $60,000 purchased this distressed duplex using owner financing for $240K and a $60K hard money loan for renovations.

If your doing REI to it's full potential, you don't pay 100% of the purchase price up front in cash.