This can be particularly risky if the property's value drops or if the sale doesn’t cover both loans, leaving the second lender with a reduced recovery or possibly nothing at all.

This is a deed that makes no guarantees at all.

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).

IRA must pay all expenses related to the investments it owns. 

Hello All, I recently just finished my paid mentorship for apartment syndication and ready to take down my first deal.

Good Day All!

Hi All,Looking for good property manager recommendations around Atlanta area.

Having leveraged a cost segregation study before, I know all to well about its tax benefits.

The rule states that 75% of market rents for all units must be more than the total mortgage payment.

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