The CEO was too busy taking his kids on cruises and posting about all the time he gets to spend with them due to this great lifestyle that MF real estate provides. 

Do NOT let that factor into any decisions you may make.Think of it like this - most guests have just a few reviews, less than 5 is normal.

The main factor in addressing your question is based on income so your qualifying income and that formula (46.99%front/56.99% back end) will determine your maximum borrowing power or ability.the front ratio of 46.99% is just the monthly PITIA(principal/interest/taxes/insurance/assessments) divided by your income.

Even with the LTR, you can do the same with REPS.You're also correct that the key factor for cost segregation isn’t whether it’s an STR or LTR, but whether you have non-passive income to offset and whether you meet the material participation requirements (or you have passive income).I just sent you some resources that will be helpful for you.

There are other factors too besides bedroom/bedroom count.

It is crucial to consider various factors to ensure accurate projections.These factors include the total loan amount, interest rate, whether the rate will be fixed or floating over the loan term, the amortization period, the loan term, and the availability of interest-only periods or future funding.

The reason I did is because I had people coming into my office looking for management services for properties they just bought through a less than honest Realtor who said they knew STR's but ended up selling them an illegally zoned property or something that will not perform well based on a variety of factors and they could have done much better.

I’m not sure when Americans decided an upscale lifestyle was a right and not a privilege.

They don’t usually foreclose like mezz— they take over control rights if things go sideways.Ideal for:Ground-up or heavy value-add where cash flow is lumpyDeals where senior lenders cap leverageSponsors who need flexibility on timing of returnsThe real deciding factor: cash-flow timing vs. controlIf you can make regular payments but don’t want to dilute ownership → MezzanineIf you can’t guarantee near-term cash flow but need capital to close the gap → Preferred EquityIf your senior lender forbids mezzanine (which happens often) → Preferred Equity is the workaroundOne more nuance most posts miss:Preferred equity comes in two flavors:Soft Pref – economic preference, no takeover rightsHard Pref – essentially mezzanine equity with control triggersUnderstanding which version you have matters just as much as the return.Both tools are powerful, if you pick the wrong one for the wrong project, it can wreck your risk profile.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).