If you are concerned it will be too hard to find a renter, lower the price and rent it for three months, then place a new tenant at the higher rate after winter.

Hey Peter, thanks for the comment and the insight and you are absolutely correct about knowing what sells in your market, I see this happen with a lot of fix and flip projects that are just in the wrong areas, the investor gets the house for a good price however spends too much on repairs and adds a lot of luxury thinking that it will push the ARV significantly higher than the average in the area.

Occupancies which were 70% or so precovid were hitting 90% and higher. 

And if you decide to own a dog that is on a list of breeds that are a higher liability, then you take that risk.Dogs that are bred to be aggressive are more likely to be aggressive.  

Rates are high and trending higher, as is inventory in most markets.

Additionally, don’t overlook the opportunity cost of pulling money from your 401k—those funds could have been compounding in the market.I’d also suggest stress testing your ROI by running scenarios with higher expenses or lower rents to see how resilient the investment is.

So % vs % on borrowed funds for investing, trading on margin is much more expensive, WAY higher risk, AND now even MORE loss of control because when these things out of your control happen you have no control for the status of those "assets". 

Higher turnover rate of tenant2.

I clean it up a little and sell it for more and a higher interest rate.

Never used a DSCR loan in the past and have always understood those rates to be higher by a point or two in most cases.