Employing this approach, the fund I previously worked for achieved a 4.93 rating.

Also just to add, we did provide an entire packet for the appraiser of the updates, added value, AirDna data with occupancy rates and market data of neighboring comps.

It requires deeper conversation if you are serious.

I just think that (1) OOS is more difficult than advertised and (2) higher rates have hurt 'cash flow' at every price point.You have Scranton, Allentown, Lancaster, etc. within a couple hours of you. 

OTOH he wouldn't have to finance the land purchase or the demolition at today's interest rates.

The builder will need to be approved by the Bank/Lender or the bank/lender can provide you an already approved builder they have used before in that County.Once the builder is approved the Bank/Lender will have a initial meeting and set up an agreed upon draw phase based on the work that will be completed in phases.Best thing to do is have a conversation with a seasoned Banker or Loan officer to start an application and set up step by step plan.Feel free to reach out if you have any questions I am always happy to help and talk REI.

Look for places that appreciates even when interest rates were at their highest.

I usually tell my investor clients that if the building itself will be in a flood zone (not just parts of the lot), it's not worth the investment unless it's a steal and you're able to pay off any mortgage easily if flood rates rise ridiculously (and you can afford to pay for any flood damage, yourself). 

Has anyone closed these new 40 year DSCR cash out loans I see advertised as fixed rate options? 

Michael, that's a scary Forum Title at the beginning of a downturn.Australia, China, Canada, California, New York have already droppedand the big banks have recently laid of 100s of high paying mortgage jobs.With interest rates over 5% for most average SFH buyers, are you leveragedfixed at 3-4%?