"Hope for the best" does not work, this can be a cruel and crushing business with expensive lessons!

Best way to find a solid cash flow deal is to talk to an expert in that area as well as on the Bigger Pockets forum.  

High credit profile DSCR borrowers are seeing rates in the 7% range. 

You can sign a new lease with your new tenants, but I would say you should honor the lease rate of your tenant still under lease… but definitely have them sign your lease because without it you have no agreement with them between you and them.  

Your best bet is likely going to be trying to figure out some sort of seller-financing, or bring on a partner to the deal that can supply the additional cash. 

The values have gone up and our cap rate is now less than a hands on property would be (we have several, that's all we do).

Perhaps even teach them how to  obtain subsidized leases that are greater than market rate.

I'm looking for insights and best practices from fellow lenders and financial professionals on how to effectively manage borrower relationships.

Depreciation is recaptured at a maximum rate of 25%.

I am also a broker and work with investors to find the best STR properties in this area.