So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.2.

For example my manager charges 7% base rate but it ends up being effectively 12% with added fees accounted for.

Below are two real underwriting examples I’ve been working through.Example 1: Duplex (North TX) — “seems affordable” but still ugly at 0% downPurchase price: ~$368kRents (conservative): $1,400/side → $2,800/mo totalTaxes: assumed ~2.20% of value → about $8,078/yr ($673/mo)Insurance: placeholder $180/moVacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $1,331/mo Mortgage P&I: about $2,295/mo Cash flow: about –$964/mo (≈ –$11,572/yr) DSCR: about 0.58Even with 10% down, it was still negative: Cash flow: about –$735/mo DSCR: about 0.64Example 2: 4-plex (DFW) — looks good on listing, but conservative underwriting is still very negativePurchase price: ~$775kRents (conservative): $1,450/unit × 4 → $5,800/mo totalTaxes: about $14,139/yr ($1,178/mo)Insurance: $6,000/yr ($500/mo)Vacancy: 8%Maintenance: 8% of rentCapEx: 6% of rentUtilities: tenant-paidFinancing: 0% down, ~6.375%, 30-year amortizationResult (full rental): NOI: about $2,846/mo (≈ $34,149/yr) Mortgage P&I: about $4,835/mo Cash flow: about –$1,989/mo (≈ –$23,868/yr) DSCR: about 0.59With 10% down, it improved but was still very negative: Payment improvement was only about $483/mo Cash flow: still around –$1,505/moWhat I’m trying to decide (and would love your thoughts on) Is it ever rational to buy deals that are negative by hundreds per month (or more), considering my goals.

Now im just looking to see if someone can help out with some contract examples or templates.

So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.2.

In examples like this, Marcus and Bo are on point.

Income volatility, rising expenses, longer timelines, and unexpected costs are all part of the analysis.A good example is Florida.

For example, we'll do that hard work of upgrading old electrical even if it means dealing with a lot of wall repairs.

This is a perfect example of why you need to have clear guidelines for rental criteria. 

Others want a vacation home they can enjoy part-time while offsetting costs through rentals.For example, I’m based in Lake Tahoe—an area with strong seasonal demand for STRs.