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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

I am currently looking to purchase an investment property.

Overall, the state is quite overpriced, mostly due to the Texas hype.Based on your description, I would guess you are looking at a purchase price of $325K and rental of $2000 or so. 

Purchase price: $575,000 Cash invested: $140,000 I live in the house that I bought it as a long-term investment.

After sitting on the sidelines trying to get into real estate investing for several years, I have the opportunity to purchase a 1 bed, 1.5 bath home in a desirable part of the California desert.The purchase price is $299,000 with a 7.3% interest rate and 3% down.

I normally purchase very cheap homes, remodel, refinance and rent.

My specialty and focus is on buying sub to and you have to bring ALL your own docs, trusts, POAs, disclosures, how to add proper adendums to the purchase contract etc. 

Congratulations on your first purchase.

Home is purchased in 2002 for $325,000 and used as a primary residence for the duration of ownership. 

I was exploring the possibility of purchasing a property out of state (in Texas : ) ) and was wondering: 1.