The big difference between conventional and DSCR property financing is that the lender is looking at the rental income and not the borrower's individual income / DTI ratio (income is only looked at for reserves and cash to close). 

I know Detroit is different than Grand Rapids, but that my only data point close to Grand Rapids right now.

That hasn't been cleaned in years and appears to have been left with water in it and the door closed and not run in a long time. 

Hi, account closed.

After closing, one of the tenants said that they gave the previous (before this seller) a security deposit and that the seller recognized that their deposit was transferred to him.

However after all the work thats required which includes landscape, parking lot, fencing lighting and interior/exterior work, it looks like the presumed cost of remodeling it will be double that, although Im not positive (still taking bids).Ive priced a comparable property in our area which has similar square footage and lot size and they seem to be going between $700-800k, and so my question is: based on a higher than expected construction cost which is necessary to finish our project, one which will exceed the amount of money of what a similar property goes for in our neighbrhood, should I continue with this project, or an alternative plan would be to simply beautify it for approximately 100-150k and ditch the plans, and flip it instead for approximately 700-800k now that its zoned commercial.My fear is that if I do invest the moneys to finish the project over the budget I initially priced it for, and the business doesnt take off, I would initially lose money on this investment.Thank you for taking the time reading this.

From what I can see Vacancy levels are not bad (5.5%) and it doesn't seem like a bad market, but from someone who lives so close I'd love to hear your experience! 

If your loan comes from your builder or if the construction loan comes from your lender (both will have different requirements) and there is a difference between a "one time close" construction loan and a "construction to permanent" loan. 

Location (rapidly changing/close to amenities)This will hopefully make it easier to rent and give you options to rent out short term if desired.

I was looking at both markets myself, although if I thought of Austin I will likely check out San Antonio as well considering how close they are to one another.