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).

There are some local investors who completely avoid Minneapolis and Saint Paul due to a number of factors (regulation being a big one).

Even $50k trapped and I have a 200% short term return from the value added above alone.if I have $0 invested, even a couple hundred a month of real cash flow (after properly allocating for all expenses including future cap ex) produces a great return.i suspect there is no bigger factor in the return than the value added and this is because the higher the value added, the less money gets trapped in the property.  

While seasonal softening in the fall is expected, the decline feels more pronounced this year, especially for single-family rentals that previously held steady.I think you're spot on that broader macroeconomic factors are starting to show up in local rental trends.

I fully understand these factors.

Either for reimbursement if after the fact, or to force participation if prior.

The main factors we've seen that make/break 203K deals are:1.

Things like:Renovation costs adjusted for local contractor rates (not national averages).Neighborhood data that isn’t just demographics, but factors investors actually track — school rezoning, insurance costs, landlord/tenant laws, etc.Cash flow assumptions that can be tweaked for different investor profiles (flippers vs. buy-and-hold vs.

Hi @Ramsey Doumani,Like @Marc Winter mentioned above, I wouldn't necessarily be concerned about the occupancy rate, as this can be influenced by other factors.

It could be because they lost a key individual, could be there too busy, or just other factors involved.