Instead, the fund invested in risky assets that did not provide the promised safety and security, was unprofitable, had very little return on investment, and a large amount of debt.

Some investors look at commercial or debt service coverage loans, others bring in a partner to share risk, or even structure a bridge loan while stabilizing the building.One thing to weigh carefully: vacancy risk and holding costs until you lease up.

Our first two subdivision lot sales are to people who have debt free homes who are building.  

Here’s where I’m at now:I’ve started contacting DSCR lenders to see if they’ll work with a 72-year-old borrower who has only Social Security income (~$1,200/month) but owns a debt-free rental producing $1,750/month on a $260K property.Early feedback is mixed: some say age/income makes it tough, others say the strength of the property could carry the deal.If anyone here has actually gone through a DSCR refi in a retiree parent’s name (with the kids managing the deal), I’d really like to hear how it played out.If that doesn’t pan out, I’ll be back to weighing the $1,400/year property tax hike against pulling out $175K in equity now to expand the portfolio.Thanks again to everyone who chimed in.

A few things that help:Run your own DSCR calculation: Net Operating Income ÷ Annual Debt Service.

Settlement of debt?

The main advantage is that approval is based on the property’s income, not your personal DTI, so it lets you grow faster without your W2 or other debt holding you back.

Additionally, the parent company to Dollywood just bankrupted 2 of their locations (not Dollywood) this week, and have over $1B in debt that they're working through, and do not seem poised to improve or invest in the area in the short to medium term. 

No car payments, no cc debt, highest possible income.

This way you know property is being watched and taken care of  There are people that would want to be part of a deal for a percentage of equity with no cash or debt involved.