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).

All the buying the lot process, financing, permits, days on the market, etc and all other times associated. 

I have experience as a Residential agent in Denver, CO and as a commercial Leasing Associate in Chicago, IL.I am planning to purchase my first rental home here in the next year or so and make it my primary residence.

If you provide your credit score, purchase price,  estimated down payment, property type, occupancy type and desired term, then most lenders should be able to provide you with their current interest rate, any associated points or lender credits for the rate provided, and their total origination fees.   

I am on the board of the RPA (Rental Property Association of Wisconsin, a non-profit) and typically hear if things like this are an issue from our members or attorneys.

To me, that can be done in many asset classes, but I think most people associate it (nowadays) with single family residential investing.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

I gave a presentation on this exact topic at the Rental Property Association of Wisconsin Annual Convention last year, and the key takeaway was that all rental strategies have their merits, but you need to know what you’re signing up for.

You don't need to use your own capital or credit.Lower risk: Since you're not buying the property yourself, you're not taking on the risks associated with ownership, like vacancies or repairs.4.

Any social groups which are associated with it, etc?