This is most likely exactly what is going on - the 10 cap is rarely ever hit because the metrics, hassle and complications of qualifying often becomes too much (which also ticks up towards worse overall terms which can include fees) - the math makes a lot of people to move towards Non-QM/DSCR right about this exact point (I generally always point to "property number 5" which looks like you situation to a tee)

The investor pointed the buyers to us by including one of our homes on their listing to help buyers visualize a house on the lot and listed us as their a preferred builder. 

It includes a full kitchen, full bath, and a small bedroom.

. $33,000 - lot purchase price$6,000 - 2010 3 bed 2 bath manufactured home$3,000 - transportation $11,000 - set up costs (includes running city utilities to the home, decking, skirting, foundation)$6,000 - repair costs$5,000 - misc$64,000 all inRecent comps show we can sell for $140,000. 

You can download it here:https://reinstate58.hjta.org/It includes instructions - but in short:You must (1) print, (2) sign (in BOTH the signature area, and the circulator area below it), and (3) mail it to HJTA.

I'm new to this and am screening a tenant.

Due to this, DSCR loans are one of the best options currently for having a property positively cashflow as they don't include other additional expenses in underwriting. 

Look for any walls or areas of prior water issues, including the attic, roof, bathrooms.

By the way, if that rate was accurate, investors, including myself, would have bought the whole town by now.

. $4M will be my leverage to cover against emergency expenses including vacancy’s and will not be touched unless it’s last resort if I can’t leverage my assets.