For investors transitioning from flipping houses to holding rentals, a Debt Service Coverage Ratio (DSCR) loan is a powerful tool for refinancing because it qualifies borrowers based on a property's cash flow, not their personal income.

For a syndication as a passive investor:- Private money - debt fund: 8-10%Multifamily: 15% (after exit)NNN: 7-9%

I took a 15 long ago because it matured when my child was going to go to college so we could either sell it to pay for college or leverage it knowing it had no debt.

Lastly understand the lenders lending parameters (LTV, debt coverage ratio and other covenants that may apply and be realistic with your loan request ask ensuring it matches up with their lending parameters). 

Any time you leverage debt or take on other people’s capital, your risk profile increases, so you’ll want to weigh the upside against the added responsibility and exposure.

--I'm transferring the debt from my remaining highest interest mortgage, 4.99%, but I can't pay it all off with the remaining credit line, so I will take monthly chucks.

Here is an example of a deal I looked at the other day that I feel like it SHOULD have worked out:Purchase Price: $150,000Down Payment: $37,500 (standard DSCR 30-year fixed rate)Loan Amount: $112,500Closing Costs: $4,500 (estimated 3% purchase price)Rehab Costs: $50,000ARV: $230,000Total Cash Investment: $92,000Property Taxes: $1,759/yrInsurance: $2,000/yr (estimated)Monthly Payment: $748.47Gross Rent: $1600/moVacancy Loss: $96/mo (6%)Property Management: $166.67/mo (8%)Repairs & Maintenance: $128/mo (6%)Cap Ex: $48/mo (3%)NOI: $935.07/mo (Rental Income less Vacancy and Monthly Expenses, Taxes & Insurance)Debt Service: $748.47/moCash Flow: $186.60/moCOC Return: 2.43%I have been shooting for a COC Return of at least 8% and just can’t seem to get the numbers to work.  

I believe since they are commercial the regs are different and they can transfer the debt easier if they are losing money and it makes it a little easier. 

.- Cash Flow Advantage: DSCR financing often improves monthly cash flow compared to short-term debt and frees up your debt-to-income ratio for additional properties.- Equity Recycling: Depending on appraisal and seasoning, you may be able to pull out much or all of your original capital and redeploy it into your next deal.- Considerations: Watch for lender seasoning rules (3–6 months in many cases), appraisal risks that could cap your cash-out, and the impact of paying two sets of closing costs.When executed correctly, this hybrid approach allows investors to move quickly on acquisitions, add value through rehab, and then stabilize the property into a sustainable long-term financing structure.

I mean think about it they make 10k for giving out tools that can be gotten many places for free and rehash old ideas etc .. and then you dont need to fund anything and take on risk.