The property cannot be valued in the traditional way, which is why I'm seeking a private lender who will value the property in a commercial-style method via the cap rate.Source of down payment funds: Implied equity (refi)Income Source: W2 for both my wife and IGross annual income (between the 2 of us): ~$300kMonthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: Student loans, rent, and what exists for this tiny house.FICO: 725Credit issues: noneThanks for reading this far!

It seems like this is one of the biggest challenges for people in real estate.This will not be a popular post, but taking a course on raising money will not magically raise money for someone.

DSCR loans typically have higher rates, pre-payment penalties, and may not let you pull as much money out as you would like because they will be based on 2 factors: the appraised value of the home and how well the rent coming in can cover the PITI payment each month (Principal , interest, tax, insurance). 

It's never wise to invest with 100% borrowed money.

Curious on creative ways to fund a deal if you didn't have private money for the BRRR strategy. 

- There are 5 ways you make money in REI that directly help you unlike S&P and REITs. 

@Faisal ZamanI would suggest accepting rent payments only by money order or cashier check to avoid issues with returned payments.

I recently came into a significant amount of money or so it is for me.

I'm looking to rent it out and rents in the area are $2,400-2,500/mo for a 3-bed/2-bath property like mine, especially on a waterway channel.The prior valuations have been $1.25 million in total but I've found from one lender that a valuation on a 6% cap rate may be the best way to give me the money I need to finish the project.

It´s tax free, take the money.