Reporting on-time rent payments to credit bureaus can help tenants raise their credit score, which will come in handy down the road when looking for a loan/mortgage for the buying process.

DSCR Loans (Debt Service Coverage Ratio):Approval is based on rent—not personal income.

Banks are definitely still involved, from what I'm seeing, even if brokers and borrowers might need to cast a little wider of a net to find one interested.For reference, about 2/3 of the loan quotes in the past 24 hours that've come through the lender matching platform I work for have been from banks.

I’m seeing more BRRRR investors turning back to DSCR loans as an exit strategy, especially when they want faster refis or don’t want tax returns to be part of the underwriting.For anyone new to it, here are some of the advantages I’m seeing on the lending side, particularly for BRRRR deals:✔ No tax returns or employment documents neededThe loan is based primarily on the property’s rental income, not DTI.✔ 24–48 hour preapprovalsHelpful when you need proof of financing or want to move quickly on acquisitions.✔ Closing timelines as fast as 10–14 daysUseful for delayed financing or when trying to pull capital out quickly to recycle into the next deal.✔ Works for both short-term and long-term rentalsMany investors are using DSCR to cash-out refi STRs after stabilization.✔ Qualify based on rental incomeAs long as the property hits ratio, income documentation is minimal.I’m curious what others here are seeing in the current market:• What DSCR rates/LTVs have you been offered recently?

It tends to resurface during periods when housing affordability becomes strained and traditional 30-year loans no longer keep monthly payments manageable.

I did the pre-qualified offers and turned out based on my good credit score that the lowest interest rates they could offer was 29.99 percent and that's the same as paying 5 times the loan amount so if you are borrowing money from one of those lenders then you'll ending paying up $75,000 at the end of the loan term.

Also note if zoning restricting units to less than 4 units is removed in CA, it is likely the conventional loan limiting to a single ADU likely will be eliminated. 

I know for sure that getting financing for investment(s) will put stress on my credit rating, so I want to create as much margin ahead of time so I can get the best possible loan terms.

Generally, agency lenders want:-Net worth equal to or greater than the loan amount,-Liquidity of roughly 10% of the loan amount, spread across the guarantor team.This becomes a gating factor as you scale.

Just make sure the lender who holds the note doesn't have any rules around acceleration clauses in their loan covenants.