All Forum Posts by: Ryan Spath

Hey Michael,

Congrats on getting into real estate—it’s an exciting journey, and asking these kinds of questions early on puts you on the right path.

To help clarify a few things:

• DSCR loans (Debt Service Coverage Ratio loans) are business-purpose loans strictly for non-owner-occupied investment properties. That's likely why the lender said you need to already own or live in a separate property—they want to ensure you're not trying to live in the DSCR-financed property. These loans are for rentals only.
• Regarding the down payment, as long as the funds are seasoned (meaning they've been in your bank account for at least three full bank statement cycles), most lenders won’t require you to explain where they came from. Gifting rules vary a bit, but many lenders won’t allow the entire down payment to be a gift—so the 5% requirement sounds about right.
• As for reserves and unemployment—that's a big one. DSCR loans may not rely on personal income, but you still need reserves (usually 3–6 months of PITI) to show you can weather vacancies or unexpected expenses. If you're currently unemployed and don't have reserves, I'd encourage you to be very cautious. Real estate can be cash-intensive. Things break, tenants leave, and holding costs don’t stop. It’s super important to go in with a strong financial cushion.

Keep asking questions and learning—it’s a process! And feel free to DM if you need help digging deeper into any of this.

Best of luck! You’re on the right track. 👏

Hey Dalton- 

Congrats on the big move to Florida! That’s an exciting transition, and it sounds like you’re bringing a ton of valuable experience with you. I actually just moved out of Florida recently and am now back in Idaho, but I definitely miss the sunshine (and the ocean breeze).

If you happen to land anywhere along the Treasure Coast or Space Coast, feel free to reach out—I’ve got a few great real estate agent contacts in those areas who could be helpful as you get settled or start exploring new opportunities.

And one quick tip: get a house with a pool if you can. The summers are no joke—hot and humid! Bonus points if you find a buddy with a boat. You’ll thank yourself later. 😎

Wishing you all the best in your next chapter—excited to see what you get into down there!

Cheers,
Ryan

Totally agree with you here. We invest (buy and hold) in a small town on the eastern seaboard, and we’ve seen firsthand how these factors affect premiums:

• Homes built after 2002 often benefit from lower premiums due to stricter post-Hurricane Andrew building codes and improved construction standards.

• Flood zones matter—a lot. If the property is in a FEMA-designated zone (e.g., Zone A, AE, V), separate flood insurance is required, and it can be expensive.

• Roof age is critical. Older roofs (15+ years) can increase premiums or even make a property uninsurable without replacement. Wind-resistant or newer roofs often qualify for discounts.

• Claim history is another big one. Water damage claims in particular can be red flags. Always ask your insurer to pull a CLUE report during your due diligence period—this can reveal past claims that might impact your policy or rates.

• We have been going back and forth of moving the capital into a different market to avoid the long term risks.

You're absolutely right to be cautious — living in Florida without coverage for named storms is a major exposure, especially with how frequently hurricanes affect the region.

While commercial insurance might be attractive for things like liability or rental flexibility, if it excludes named storm coverage, you're potentially on the hook for catastrophic losses from wind, rain, or flooding during a hurricane — which is exactly the kind of risk insurance is meant to protect against.

Here’s a quick breakdown of your situation:

• Florida = high hurricane risk.

• Named storms = the biggest insurance threat in Florida.

• No named storm coverage = you could lose the entire structure without reimbursement.

Hey everyone, quick question for my fellow investors and agents out there —

I was recently networking with some other agents not in my market and came across a couple who are actively offering 30–40% below market value on MLS listings.
Surprisingly, they’ve been having some success getting responses and even a few accepted deals.

It got me thinking —
Have any of you tried this strategy in your market?

• Are sellers actually entertaining these lower offers where you are?
• Does it seem to work better with certain types of properties (distressed, long days on market, etc.)?
• Any tips on making these low offers more likely to get a response?

Would love to hear if anyone’s had experience — good or bad — with this approach recently!

@Brett Ponters 

We have properties in Florida a couple hours north of you, and my agent has been telling me that other investors have been offering around 40% below MLS asking prices — and they’re actually getting responses and even some accepted offers.
If you can communicate directly with the listing agents and have solid cash buyers lined up, definitely give it a try!

With how things are sitting right now, it seems like there’s more room to get aggressive, especially on those light rehab deals where sellers are a little more motivated.

@Dalton Prows 

Hey, welcome to BiggerPockets — glad you jumped in! Sounds like you're making great progress on your first rental.

About your question: while building code typically requires a minimum of 70 sqft for a bedroom, what really matters is what’s typical and expected in your market. I'd highly recommend researching local rental listings (especially ones near your property's size and location) to see how big bedrooms usually are.

In some markets, smaller bedrooms are totally normal and renters won't mind, especially if you're offering three total bedrooms and two baths. In others, tenants might expect larger rooms and could see the small size as a downside.

If your market leans toward valuing functionality and higher bedroom count (like for families or roommates), two smaller bedrooms might rent better.
If space and comfort are bigger selling points, one larger bedroom could make more sense.

Bottom line: let the local market guide you — and great job thinking this through before pulling the trigger!

@Shane Murphy 

Building Wealth One House at a Time by John W. Schaub is my all-time favorite — the principles are truly timeless, in my opinion.
BiggerPockets has a great collection. 

• The Book on Managing Rental Properties by Brandon Turner

• The Book on Rental Property Investing by Brandon Turner

• Landlording on Autopilot by Mike Butler

• Build a Rental Property Empire by Mark Ferguson

• The ABCs of Real Estate Investing by Ken McElroy

• Tax-Free Wealth by Tom Wheelwright, CPA

• The Millionaire Next Door by Thomas J. Stanley & William D. Danko

• Lifeonaire by Steve Cook and Shaun McCloskey

I've personally used the BiggerPockets leases provided to Pro members, making edits along the way as needed.
For insurance, you can reach out to almost any company — we've been happy using State Farm here in Idaho.
As for ROI calculations, we keep it simple: we created a basic Excel sheet to quickly run the numbers and decide if a deal is worth pursuing further.

What market are you interested in investing in?

@Ryan Ramsay welcome to the amazing world of investing! House hacking is definitely the way to go! Portland is a great market (I used to live in Tigard) the landlord tenant laws are a bit tricky so be sure to become familiar with these especially if you purchase a property with tenants in place. I'm local in Idaho, Boise specifically if I can help in any way, please reach out. 

@Jasmyne Rucker, welcome to the wonderful world of RE investing! Read, Watch, go to.

1. Read every book you can on the topic, BP has an amazing source of books to choose from. Building wealth one house at a time by John W Schwabb is one of my all time favorites!

2. Youtube university is another great resource. Brandon Turner, Chad Carson, David Green, Ken McElroy are a few of my favorites.

3. Lastly dive in, go to local meet ups, and see what people are doing and get ideas from them, we all love to share, there is so much opportunity to go around we can seize it all.

Best of luck, lean in if you have any specific questions, I'm in Boise, Idaho for reference and also invest long distance in a small market in Florida.