I understand they have a little bit higher interest rate, but what are the risks of DSCR loans?

Here's a breakdown of both the risks and opportunities:Risks to ConsiderHigher Interest Rates: Financing is more expensive now, which can compress cash flow and make some deals less appealing on paper.

I just learned that builders risk and liability insurance coverage can cease once a CO is issued for a new build.

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

There isn't a lot of things you can do to mitigate the risk.

This is in RI so letting the heat out is not just a big cost but a risk.

"What Is The Biggest Risk For 2025" And 13 Other Highlights From DB's 2025 Market Survey"The Deutche Bank 2025 global financial market survey had 471 responses from around the world, and was conducted between the 10th and 13th of December 2024.

@Wiley HoodYes, there're risks:1.

Lots of older houses but there seem to be several that have the potential for cash flow and while not exactly modern on the outside, have been renovated inside. 

Any risks?