HOWEVER, the timing of this is directly connected to when their academic programs start.

This criteria is for 1-4 and 5-8 unit programs.

DSCR floors are landing in that 1.15–1.20 range for most files, but I am seeing a few programs dip under 1.0 when the borrower has really strong credit, low leverage, and solid reserves.

I would only use a private lender who is part of our Featured Lender Program at BiggerPockets. 

First, they tend to have only a couple of programs and if you do not fit in their box, you don't fit in their box.  

They purchased using a program that finances 100% of your purchase/rehab on paper, and takes a 15% deposit as cash-collateral that they hold until you refinance.• $60k purchase• $35k rehab• $95k total rehab loan payoff• 15% deposit = $14,250 "down payment"• $126k ARV (confirmed via refinance appraisal, borrower expected this to be higher)• 80% rate/term refinance ($100,800 loan) @ 6.75% [700-719 FICO]• Applied $4k of deposit to payoff for an updated payoff amount of $91k• Cover closing costs with 80% r/t refi + $2k back to borrower at closing (still considered a r/t refi if under $2k) + remaining $10,250 deposit reimbursed after payoff = $12,250 total back to borrower• $4k of his deposit + closing costs for rehab loan = his "cash" in the deal• $1,250 market rents• Total PITI = $765.62• DSCR = 1.6327 I do not see the hold costs.  

Perhaps he’s passed away, but had entered a long term email marketing program thats on auto pilot and can’t be shut off.

For one of my properties they just started a license program.

The ones that I anticipate being around for a long time, I have tightened the underwriting standards while the ones that are chasing volume continue to come up with “creative“ programs that typically will not end well for them.

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.