Both are basically just the same issues you'd have with any other property.

On a 400k purchase you are basically using the whole line, so run the quick reality check with real assumptions rent minus PITI minus management minus maintenance minus a vacancy hit and make sure the DSCR still clears and you are not negative before repairs or turns.

The reason we still feel bullish (not reckless) is that there are several obvious levers the prior operation didn’t really pull: delivery/pickup was not executed well; we’re partnering with owner.com to rebuild the website/app funnel and online presentation (not a plug — just something we believe will move the needle),delivery radius will be supported via Uber drivers (~15 miles),alcohol sales were only 1–3% previously because the old location didn’t have an actual bar and there was basically no signal that they served alcohol (no mixed drinks, no “bar energy”),the new space has a fully remodeled (2007) kitchen/dining, plus a legit outdoor eating area, and we’re reopening there in April.  

I found it helpful to look at markets across multiple tradeoffs instead of treating any single metric as decisive.As a simple illustration, consider two geographically close Midwest markets — Cincinnati and Columbus — not to declare a winner, but to show how different lenses highlight different strengths.Common heuristics investors tend to reference:Cincinnati: lower median home price, lower typical rent, often meets the 1% rule, moderate historical appreciation.Columbus: higher median home price, higher typical rent, rarely meets the 1% rule, stronger historical appreciation.These signals are useful for understanding entry price and basic cash-flow potential.Signals that surface broader tradeoffs:Cincinnati: higher rent-to-income pressure, more concentrated employment base, slower liquidity (days on market and inventory), lower structural friction.Columbus: more resilient rent-to-income, more diversified employment base, faster liquidity, moderate structural friction.This second view doesn’t predict outcomes or replace deal analysis — it helps explain why similar-looking markets behave differently under stress, growth, or different strategies.All of this is relative, not absolute, and weighting depends entirely on goals (cash flow, appreciation, balance, risk tolerance).

Many independent agents have access to ReInsurePro which is basically NREIG for agents - plus many other programs. 

laughed when I saw that comment as you are correct don, we correspond with multiple DSCR lenders who are the institutional lenders and most do not allow a second and if you do it has to be disclosed upfront and never would allow 100% financing on it AND it still has to meet their DSCR requirements.Saying it does not matter basically is admitting to mortgage fraud.

You’re not a random office where they’re one of 200 clients.Communication – Clear update schedule (monthly report, repair approvals, tenant issues).Cost savings – Yes, lower fee, but frame it as efficiency, not discount labor.Shared trust – You’re protecting their homes like your own.But — and this is important — you also need to show you’re taking this seriously as a business, not a favor.Before you pitch, line up:A basic management agreement (spell out duties, fees, repair limits, etc.)Process for maintenance (who you call, response times, emergency plan)Screening criteria (income, credit, background, pets)Rent collection system (online payments only — no chasing checks)Local landlord-tenant laws knowledge for VAStarting tips that matter most:Screening makes or breaks everything.

So maybe if the post explained what the investors did ( of course many I dont think really know what they acutally did or invested in) and then details on how to protect themselves by doing basic commen sense due diligence and making sure money for mortgage or trust deed investments goes through a title company with corresponding lenders title insurance. that would have prevented what I am seeing your Post Jack probably 80% of the folks from this situation. 

My suggestion would be 2 basic things. 

While I think your question is a good one...and interesting...the person/lender that decides to back a deal like that is basically going to be making up the rules for themselves.