However, I came across a YouTube video suggesting that lenders may look unfavorably on this rental strategy when evaluating applicants for a DSCR loan.Could someone clarify whether this information is accurate? 

Hi @Mark SorecoIn recent year it has been an overflowing of digital property management companies, many of which are not making any many and constantly investing in customer acquisition, that is the main reason that you see so low coat on their offering.If you go to stablish digital property management like belong home you will see that prices are similar than a local property management and they make you save many offering you additional services at no cost.You have to evaluate what would it be the additional work that you will have to do to get at the same level than the local PM.You have to analyze this as a business owner like any other services that you will buy from a service provider.

Use your brain and math skills to evaluate property.

20 Questions to Ask When Vetting a Property Management Company: Processes13 Questions to Ask to a PMC: Communication and Documentation24 Questions to Ask When Evaluating a Property Management Contract

If you’re curious about the model/assumptions or want a copy of the spreadsheet for educational use, please send me a direct message and I’ll share a read-only version after a quick intro.This is intended as a learning post for investors evaluating STR vs long-term multifamily economics.

I'm in a Co-Investing Club, where members with different experiences and skill sets come together to help analyze deals, evaluate markets, and navigate out-of-state purchases.

I reached out to Kiavi as suggested by our investor meetup group , but the online app denied being able to provide services , I talked to someone there and they couldn’t answer questions, they had said the deal was good when they evaluated, and looked at everything , but since the app denied instantly they can’t give a reason or go further.

Hi @Joshua Rodriguez, I haven’t done a flip on my own, but I have invested in flip projects  through my club, and from watching the operators and going through the vetting process, I’ve learned a lot about what matters in evaluating deals.

That means more of your cash stays in your business, not the IRS’s pocket.For many buyers in this market the ability to offset income and reinvest tax savings is a major advantage — and it strengthens your underwriting.Since STRs have strong appeal (friends & family groups, weekend escapes, high-end amenities) the sooner you position it as a business, the better your financial outcome.Your Step-By-Step Playbook for Cost SegregationHere’s a practical checklist to make cost segregation work for you in an STR:Buy/underwrite with tax strategy in mind: When you evaluate a property, include cost segregation as part of your operating model (not just nightly rate and occupancy).Engage a cost segregation specialist: You’ll want a qualified provider who understands STRs (they’ll allocate assets into proper shorter lives, document everything).Structure operations for “business” treatment: Track participation (guest communication, property maintenance, marketing) to lean into non-passive income treatment.Conduct the study early: Ideally in the year you take service (purchase or major renovation) so you front‐load benefits.Keep detailed records: Invoices, improvement costs, design/furnishing upgrades, hours spent managing.

They require owner-occupancy (you must live in one unit as your primary residence), but you may be able to combine it with down payment assistance (DPA) programs to help cover your 3.5% down payment and possibly closing costs.USDA Multifamily loans – sometimes offer 100% financing in rural areas, perfect if hard money lenders aren’t available.DSCR loans – lenders evaluate the property’s cash flow rather than your experience, so first-time investors can sometimes still qualify ( depending on your credit worthiness and cash on hand.These options can sometimes work when hard money lenders won’t, especially for someone in your situation with a property that has strong comps.