I'm prequalified for a DSCR loan (unemployed so this is the best loan for what I am looking for). I believe I am qualified for the best rate possible based on my credit score. But even still I am looking at a 6%+ rate with 25% down. The property I'm looking at is just fine for DSCR but once all expenses are said and done I'm looking at little to no cash flow (most places I do the math on I get negative cash flow.)

Now I may slightly overestimate the expenses, but what that much interest I am really looking into making a cash offer (maybe a slightly lower cash offer as well as a financed offer.) All cash would take a little less than 1/5th of the money in my bank trust. But my cash flow day one is looking really good (including all the expenses.)

And the way I'm looking at it, if I want to refinance it when rates are better then I always can, correct? But this way I would have a much better idea of how my expenses are looking once I own it and if I could still cash flow well if I refinanced it.

Meanwhile this would be an opportunity for me to put my foot in the door and have income coming into the LLC I will create (which I am assuming I may be able to get other types of loans with income in the future as well right?) and that way if the market changes drastically or I am able to find a one in a million I would still be perfectly capable of getting a loan and striking on it.

This would be my first rental and I would just like to get some thoughts before I make an offer. Thank you.

Should I consider a cash offer?

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