DSCR stands for Debt Service Coverage Ratio and you qualify based on the property itself rather than your DTI, work history, etc.

This will give you an idea of the average sale price and what you can expect to get for the property if you make the necessary repairs and upgrades.Property History: Look into the property's history, including any previous owners, liens, or legal issues.

The ADU did a site visit, and the takeaways included adding a second story would be significantly more complex and expensive than a backyard ADU.

But in general, I pulled a HELOC, used the money to buy another property, seasoned the property and got new debt on that building.

Hello, I'm new in this space and I'm looking for any investors in this area. Maybe I'm in the wrong room or just not enough people from Cali on this platform. Please let me know

Do they include property tax and estimated income tax from the projected profit?

They are being "sold" on real estate providing so much tax benefit that it includes deduction against their regular income...

Then, the permits taking longer than expected, the repairs budget going to the roof, getting new GCs, the property taxes increase, using the wrong debt and investing alone.

Hey @Mario J PerezAdvantages - Processing time, underwriting conditions, paperwork requirements, not impacting debt-to-income and/or personal credit, can own many and close in entities reducing personal liability (to name a few).Disadvantages - Rates tend to be a tick higher (less and less these days) and fees will be a few thousand more per deal, can be very regional, higher appraisal costs usually (based on the need for a 1007 rent market analysis on every one), can have weird underwriting conditions (lender specific)30,000 foot view at it, but the entity/personal credit side of things make DSCR loans really helpful as you start to scale, and especially if you are doing any personal borrowing for personal homes, cars, etc.Hope that helps!

Also, you will need to build a solid team, including a VA-savvy real estate agent.