DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Good morning Jen, Were you guys ever able to find a lender who could pull this off?

In case helpful, here's more info on DSCR loans:DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Believe in yourself, Cory.On a personal note, if you want to bounce ideas off someone, you can hit me up.

Whatever you lose in a turnover will be made back pretty quickly once you get a tenant in there that takes that utility burden off your hands.

A book I’m reading mentions “taxes” should be included in operating expenses but they don’t specify what type of taxes.All it says is “call your local county or look online at the county assessor’s page”No clue what that means, could someone clarify what taxes they’re referring to?

With asset based or DSCR (debt service coverage ratio) loans or rental specific loans, lenders calculate the income by the PITI (principal, interest, taxes and insurance) to qualify for the mortgage loan.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

They are typically the opposite of value adds in that they typically have a hands off cost more than the value added.Your broker is correct that Fannie/Freddie are not to use the rent from the ADU. 

I am doing this because this is not the only property I intend to buy so I thought I should start off with an LLC now.