You just take the total income of a property (usually just rental income) and divide it by the cost, which most lenders use what you said, the P&I + tax and insurance cost.Some lenders will take a look at the maintenance costs as well, but with a healthy enough DSCR that can usually overcome it.All that to say based on your original question, most lenders will vary a bit by what they would consider a ‘good’ cash flow, but 1.2 is pretty consistent.

What you'll require for a downpayment will vary based on location.

When I underwrite a property, as long as the tenant base in month to month, I look at the purchase price vs. the proforma or market rent for a quick indicator if the deal makes sense before underwriting further.

For example, in August, locally based 99 Cents Only Stores sold their 800,000-SF distribution building to Dart Warehouse Corporation for $190 million ($237/SF) in a sale-leaseback deal.

That way we have a home base if and when we decide to come back for a few weeks/months.Doing some research on Airdna, there are only a few properties that have the same features/amenities as us (8 in the whole city) and they range from $250-$1,100/night in the winter.We'd be one of the only properties in our city with certain amenities (gym and hot tub) So my rationale is that we'll be able to charge highly for a unique experience.

They are all currently in my TN-based LLC.

Both tactics offer distinct benefits, and your decision will be based on your tastes, goals, and local market conditions.

Here are some ideas based on the obstacles and issues experienced by those making a similar transition:Financing and loan structures, valuation methods, lease structures, property management, market analysis, regulations and zoning, tenant relationships, and so on are all notable differences.Challenges: Due Diligence, Professional Guidance, Market Research, Financial Analysis, Tenant Selection, Property Management Systems, Risk Management, Networking with Other Commercial Investors, etc.Transitioning to commercial real estate can be rewarding, but it requires a different skill set and mindset.