We were conditionally approved for loan until the appraiser brought up to the attention of the underwriter that the basement was illegally used as an ADU.

My plan is to raise capital for the down payment through an investor and create an LLC with my father to get approved for a DSCR loan.

The property was bought and renovated with cash, so there are no financing costs—just the opportunity cost of the investment.Comparatively, I’m currently earning 5% in a money market account and 10% from participating in hard money loans.

Have you loked into DSCR loans at all?

A 203K loan with the small amount of equity upfront would be the way I am leaning towards currently.

I’ve done all the research on the front end of how real estate works (like running numbers, knowing loans, and the process of buying the home) but none when it comes to managing it with tenants.

Does anyone have any experience with Offer Market for DSCR loans? 

If you are using your VA loan it does not really matter if you get the 1% rule.

Who is your go to for fix and flip loans or are you doing these in cash?

Conventional loan - this was a house hack so I purchased as a primary residence and then rehabbed it while living in the property with 2 kids during COVID 🏗️👨‍👩‍👧‍👦🔨🚧 How did you add value to the deal?