The easiest way to explain it for many is we are similar to home flippers - with the difference being in lieu of fixing up a property that is in distress and selling it, you do this with the borrower.

When hiring contractors, the key difference compared to employees is the level of control.

Some might be depreciation recapture,  Your state makes a difference. 

This is markedly different from a stick build where you'll have many draws throughout the process and you'll be paying interest on those draws as the build stretches to 6 months or so..

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I would call them "different risky." 

I went to a foreclosure auction just to meet people and see what happens. I have heard that you can get a list of pre-foreclosure too. I went on my local county clerk's website to find it and all I found was the forec...

There are a few pockets that might cashflow well, but I would consider different suburbs.

I can see 3 different scenarios:1.

Go local where you can make a difference.