Hey James,That’s a solid question, and I’ve seen this scenario come up quite a bit.

The purchase price was $560,000, so I knew the costs would be high. 

If the property doesn't meet the DSCR or the value basedon the market cap rate, your down payment will increase to bring up the DSCR orclose the gap to cap-rate value.Challenges/Lessons Learned: Just becauseyou can buy a property with a CMHC insured loan doesn't mean it is a good deal.We've seen a lot of investors agree to pay too much for the properties, and getshocked with a big down payment and low cashflow due to the low DSCRrequirements.

What are some other ways to fund the 15% gap?

The young couple who entered were totally confused and thought he was the realtor!

I understand the cost of having to separate meters and purchasing additional water heaters and such will be hefty.

I’m a licensed real estate agent in North Carolina as well as a contractor here in the triangle.

I hope this is the right category for this post.  

I couldn't find many helpful posts about if it's legal in Texas or not.

The downside?