Underwriting items for DSCR loans include appraisal, credit report, liquidity verification, borrowing entity documents, landlord insurance verification, and whereapplicable lease, verification of rent and security deposit receipt, and property management agreement.DSCR lenders should never ask you for tax returns, W-2 income, pay stubs, or company financial statements.A good DSCR lender can fund your DSCR loan in under 30 days.Pro Number 2: Loan StructureDSCR loans are generally structured as thirty year term, fixed rate and fully amortizing, with LTV up to 80%.To increase cash flow and boost DSCR to qualify for a higher LTV, you can even structure with a five or ten year interest-only period where principal payments are made over the remaining portion of the 30 year term.Most DSCR lenders can fund your loan with DSCR as low as 1.0, though 1.1 is where you will find the best terms.A few DSCR lenders specialize in no and low seasoning cash out refi for rental property investors who use the BRRR strategy.Compare this to traditional banks which generally offer lower LTV, shorter term, higher DSCR requirement, and 6 months of seasoning.Pro Number 3: ReliabilityDSCR loans are a growing component of the multi trillion dollar institutional credit market.While DSCR loan origination volume is growing fast, it struggles to satisfy the demand from institutional investors such as insurance companies, pension funds and credit funds that buy DSCR loans.For this reason, as long as DSCR loan program guidelines for subject property and borrower are met, there is a very high probability that your loan will be fundedwithout delay.Compare this to banks which may subject you to months of underwriting before ultimately rejecting your loan application for reasons unrelated to your application.Con Number 1: Strict GuidelinesThe largest and healthiest part of the DSCR loan industry is 1 to 4 unit residential investment properties in non rural markets where the As Is value and the purchase price is one hundred thousand dollars or higher, and the guarantor's credit score is 680 or higher.If an element of your transaction does not fall within program guidelines, your loan will either be declined or require an exception which can cause delay.DSCR loan program guidelines are constantly evolving to adapt to the demands of borrowers and institutional investors, and to respond to market and risk.A good DSCR lender will knowledgeably and transparently communicate program guidelines, proactively communicate to identify potential issues, and set expectations in a clear and thoughtful manner.Con Number 2: ShenanigansThe DSCR loan industry is fast growing and loosely regulated, attracting loan brokers, private lenders and salesmen who are not knowledgable about program guidelines, not expert in structuring your loan to meet your specific goals, not capable of closing your loan in a timely manner, and not truthful or transparent about loan terms.Con Number 3: Higher interest ratesGiven the demand for DSCR loans from institutional credit investors, the credit spread or risk premium has decreased, making DSCR loan interest rates from the most competitive DSCR lenders nearly the same as bank loans and conventional investment property loans.We should include an asterisk on this con because it is not always true and may not be true in the future.

I am looking into possibilities to remedy as well as getting quotes from other insurance companies.

Theoretically, yes.While it is not entirely impossible, for most people the more likely path to success is to build the skills necessary with a couple duplxes. 

Closed and funded! Elmwood Ave, Durham! This is the 12th acquisition of the year.

I've asked my current PM company to see if they have any contractors that could take a look

What are some things i should put on the Rental Agreement to protect myself form rentals not paying or etc...And what are some tips to create a successful rental income.

I have cleared a tax deed on my own without an attorney or Quiet Title.I keep most of my properties as rentals.I am in the middle of 2 Quiet Titles right now for houses I couldn't readily clear on my own.I have been doing this for over 10 years and have successfully converted tax deed properties into rentals.

@Remington Lyman any suggestions on Property Management Company in Cleveland?

They should be involved in the selection of the investment property and giving input on how to maximize the return on investment.Finally, I would recommend you consider starting with at least a duplex if you can, so you hopefully always have a rent check coming in during a vacancy.To your success!

100% have your tenant go through their renter's insurance as well as I would make sure the insurance company is notified that the repairs are already underway, they have received a rent discount, and you covered a placement for a hotel.