Lenders hate garden units, and it shows in your DTI hit.That +$250/mo difference in how they underwrite the income may not feel huge today, but it directly affects how soon you can qualify for your next deal.

Focus on earning a high active income.

Quote from @Santos Lopez: I heard that there's a way to deduct short term rental losses against earned income (e.g.

@Duke Davis  The three low rates were:4.25% fixed for 10 years then variable for the back 20 years (twice id that deal this year)4.75% fixed for 30 yearsAll 3 deals were arranged through a new home builder. 

It's tempting to pay off a few rentals, but the math does not support it: really low ROI as you have mentioned.

All your current and future active income goes into the passive side of the business.

Might as well just invest in a low-cost index fund.

My last few offers were to be STRs that had income that met the 2% monthly rent ratio.  

Market shifts have made strategy even more important lately.DSCR loans are based on the property’s own income rather than the borrower’s personal DTI, which makes them ideal for investors scaling portfolios or holding properties under LLCs.

Quote from @Arron Paulino: Quote from @Ricardo Hidalgo: Unless you're trying to depreciate a huge tax build, rentals overall high very low operating margin if everything goes right.