I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

In this situation, can all the partners claim mortgage payment as expense in their individual taxes (or just the partner who owns the mortgage)?

Lots of friends (owning competing businesses) had to go through Bankruptcy recently due to the small market shift that occurred, just bought at the peak and were too hopeful in the market continuing upward.

Requiring the homeowner to replace the pipe individually would seem like a huge octopus of inspections and enforcements and etc.

So, you, as an individual, may not get to the same rate that a MASSIVE national builder can...but you can certainly offer credits to the buyers to help buy down the rates. 

Ironically it's normally the individuals who go to the greatest lengths believing they are protecting themselves who are the most reckless in the way in which they operate their real estate.

I noticed a lot of what people are saying that the experience and the way I talk seem like I am going in without a lot of knowledge, and my biggest obstacle is experience.I am making up for that gap of experience by doing things like this, talking to successful individuals like yourself and everyone else on this thread.

I like how even though you rent to the working class individual and they aren't $100K+ homes.  

However, it’s important to understand the loan’s key requirements:Owner-Occupancy: The borrower must live in one of the units as their primary residence for at least 12 months.Single Borrower: FHA loans are issued to individuals, not partnerships or entities, which means the loan would need to be in your name alone.Given your scenario, only you can qualify for the 203(k) loan since your partner does not intend to occupy the property.2.

., contracts, blueprints, reports, scanned records, etc.) while managing access permissions for teams and individuals.2.