Generally, speaking my investors require anywhere from 22-30% ROI.Now if your risk tolerance is lower than mine, you are likely better off looking at rental properties.

We have seen far too many borrowers on STR and S8 purchase the property expecting to pull some/all of their cash out on the DSCR only to end up having to bring additional funds to close because they didn't hit the required DSCR ratio.

Hi Nicholas, we normally adjust the terms of a standard lease based on property type and landlord's requirements.

My leases require 660 credit score or better. 

Some lenders will require seasoning requirements so just make sure what the lenders terms are.

We were definitely going to pull required permits, which was going to be annoying because so much requires a permit in MN, but wanted to take advantage of resources in our community -- for example, my FIL is a retired HVAC tech who offered to out in vents and/or mini-split system. 

FHA is definitely one route you can go, in the current market with elevated home prices, and interest rates its alot more difficult to utilize and fha loan because with any 3-4 unit property you will need to pass what is called "self sufficiency test" essentially fha has a rule for any 3-4 unit property that requires 75% of the projected rental income to cover the total mortgage payment in order to qualify for financing.

The buyers lender is requiring this letter.

EXAMPLE: in the Detroit area, the two utility companies require you to wait a year to rejoin the program if you opt out.

If you are looking at properties in the 2-250K range that would mean you will need 40-50K plus any closing costs and required reserves.