Earlier this week I saw 5.8% on the commercial side from a local regional bank, and then yesterday we saw 5.6% on the conventional residential side. 

Pair that with staggered capital: a primary hard/private bridge on each project with 12–18 month, interest-only terms, plus a written 60–90 day extension clause and a backup takeout (DSCR or conventional) ready once rehab is 100 percent, photos done, and rents or ARV supported.

I asked if this is part of their walk through checks to maintain or charge the previous tenant for damage.

Same as if you bought a turnkey property with a conventional loan.

@Matt Macvittie  Any reason why to not use conventional lenders or DCSR loans? 

.- They charge me for getting estimates, even though PMs typically get them for free because of their volume.- They don’t get second estimates, so I can’t be sure their pricing is competitive.- They won’t visit the property to assess issues in person.- Refused to do rental showings despite written permission from my long-term existing tenant.

This arrangement can be attractive to buyers who have trouble getting conventional loans and to sellers who want to sell a property that may be difficult to finance through traditional means.

DSCR can work without W‑2 if the rent covers the new PITI, though rates and fees run higher than conventional, and lenders often want a DSCR above 1.0 to 1.2.

Currently for prime borrowers on jumbo investment property with conventional 20% down payment - rates are approaching 6% and low LTV's are well into the 5%'s.In real estate terms: Days are Weeks.Get going and good luck! 

From my experience, DSCR loans have opened the door for a lot of investors who otherwise wouldn’t qualify conventionally, especially once they’ve maxed out their personal DTI or left their W-2 job.