If you are looking to finance the purchase and rehab, most hard money lenders will be able to lend to you as long as the total loan amount does not exceed 75% of the ARV and you can put 20-25% down on 1-4 units. 5+ units will require experience with several 1-4 units or 5+units 

The formula for calculating DSCR is straightforward:DSCR=NetOperatingIncome(NOI)/TotalDebtServiceNet Operating Income (NOI) represents the property's income after operating expenses.Total Debt Service includes all debt obligations, such as loan payments, property taxes, and insurance.A DSCR ratio above 1 indicates that the property's income is sufficient to cover its debt obligations, while a ratio below 1 suggests insufficient cash flow to cover debt payments.Lenders usually have specific DSCR requirements, with higher ratios indicating lower risk for the lender.

This is an average condition house for the neighborhood and area.I have set my screening requirements as:600-650+ credit score3 times monthly rentNo evictions, violent, or sex crimes6+ months of job historySome form rental references.I have an applicant who meets all requirements except I am unsure if he will have rental references because he told me he's couch surfing right now.  

BUT even having ALL the details in the listing..... requirements etc....

Their business model relies on deal flow, and that requires some conformity to what the secondary market is willing to buy.

Most tenants are happy to pay it because they understand a broken contract comes with penalties.My agreement requires them to participate in showings to potential renters during their final 30 days.

They both require the same investment, $10k.Conservatively, you anticipate in 10 years that the property will not receive ANY appreciation.

A red flag is a warning for you to dig deeper.I recommend your offer to purchase include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

This is how most hard money works now Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

For SD IRAs custodians are required.