Just make sure you run your numbers carefully, factor in maintenance and vacancy, and move forward once the deal makes sense. 

Any other fees such as close out fees or payoff demands are paid out on the back end when your loan is refinanced or paid off.

Don't forget to factor a few differences into the equation - with switching to LTR you'll need to move out the furniture etc. and store it somewhere. 

You mentioned 20k finder's fee (is this for each property sourced or a one time fee for their program/etc), 10% maintenance fee on gross income, $18/SF design fee.

DSCR is for rent ready properties only, as the cash flow is the approving factor.

Just as a short sale doesn't mean a borrower defaulted but still signals financial distress, a cash for keys agreement can be a red flag that should factor into leasing decisions.

You just need to factor it in.

Now, if I go down to 1.1M, and you factor in full asking - 6% closing fee, I walk away w/ 1.034M.

We’d love to make this work, but at $460K, the numbers just don’t support it, especially factoring in the cosmetic work needed.

As long as the projected rent from the ADU covers the monthly payment (typically 1.0–1.25x), you can qualify.We’ve recently done DSCR deals with rates as low as 7%, depending on factors like credit score, leverage, and property type.