Once the new pit is installed we’d install aproper vent to restrict the sewer gases from getting intothe home.

Would depend on the loan amount size.

Of our 50 plus loans about 10 went into default in the financial crisis of 2008.  

My worry is that it is almost end of the month and he still didnt do anything at all on the project.What are my options if he comes on May 1st and tells that he has no money or that he will pay in installments?

I saw some of your previous posts, so I'm glad you're getting closer to your first.I think your rent sounds pretty cheap between you and your fiance now, but I also don't know the COL in your area.Maybe if you found something comparable in price or slightly less, then it could still math out, because you'll be benefiting from appreciation, loan amortization, and potentially a housing expense decrease over the long term even if slightly. 

If the loan amount exceeds $1M, then rates are in the high 6's to mid 7's. 

I'm sure that is true, because most mortgage companies aren't going to go searching for issues when there aren't problems - but in the truest sense of the word this is loan fraud and I'm just not up for it in my portfolio.I did hear from a friend of a friend type that she was able to close a subto with a small local bank somewhere in Georgia (property was also located there) because of a long standing relationship with the bank. 

@James Trobaugh in either situation, you could use an FHA loan.

Technically, not all lender would approve a DSCR loan for someone who has not owned their primary but there are some lenders who do lend to FTHB a DSCR loan.

We're currently saving up enough for a 20% down for a conventional loan to bypass having to pay for PMI and MIP, as these 2 additional monthly expenses are a "make it or break it", in finding a cash flowing property in California.I would love to know what your story was like when you first started your real estate investing journey!