Run worst-case vacancy (60–90 days), 10–15% capex shock, and 100–200 bps higher interest on your pro forma to see if the deal still works.Red flags: Major deferred structural issues, inconsistent leasing records, big unpaid utility/back-tax bills, or an absentee seller who won’t provide unit-level P&Ls.If you want, I can share the quick checklist I run on first tours (what I ask, what I photograph, what I insist on seeing in the paperwork) — happy to connect and trade notes as you underwrite deals in Chicago.

On a duplex, locking in a fixed-rate loan gave me more peace of mind than any pro forma rent growth assumption.

Nashville STRs are such a hot space, and it sounds like you bring serious value with zoning, pro formas, and tax strategy support.

TICs can be excellent tools to fractionate larger assets and preserve 1031 flexibility, but the success rides as much on partner alignment and paperwork as it does on the pro forma.

I altered the course I was on not for an easy route because I did form a company and was doing the business very well for a while.

Kelly, DSCR loans have definitely been the workhorse for investors scaling past conventional caps, but they’re not a magic bullet forever.What I’m seeing:Terms are tightening compared to the last 2 years (higher DSCR requirements, slightly lower leverage), but capital is still flowing if the property income is solid.Sustainability depends on discipline investors who underwrite conservatively (real rents, not pro forma dreams) can keep scaling long-term.Creative structures we’re seeing include portfolio DSCR loans (rolling multiple properties into one facility) and bridge-to-DSCR plays where investors rehab with short-term debt, then roll into a DSCR takeout.At the end of the day, lenders want to see properties that can comfortably service debt.

Our purchases from 2024 and 2025 are performing above pro forma.

Rarely does the spreadsheets pro-forma you are likely relying upon accurately depict the true costs of ownership.

Realistic pro forma statements4.

Use comps you’d bet on.Rehab: Scope needs vs wants; add a contingency; tie each line to either rent lift or ARV lift.Rent: Pro forma with today’s realistic rent, not best case; include true expenses and reserves.Refi: Model two terms scenarios; check seasoning and expected LTV so you know how much cash you can pull; stress-test rate and appraisal.Repeat: Ensure you still like cash flow after the new loan and you’re not overlevered.Use a simple spreadsheet: inputs for ARV, purchase, rehab, holding/closing, rent/expenses, and refi terms; it spits out cash left in, cash flow, and ROI.