If you want to know more about tenant pools and their importance, please contact me.Only Renovate to Your Target Tenant PoolAssuming that you have identified your tenant pool, you need to transform their critical and desired housing characteristics into a physical property description, as illustrated below.Create your property description based on your target tenant pool segment.

I'll give you a specific example of 2 properties to illustrate.  

Just trying to illustrate that even after you build the building and deliver a shell, theres a good chance many of the users you are going after are going to ask for TIA and help with buildout to some extent.  

Personal Financial Statement Borrower’s Schedule of Real Estate – or- Resume illustrating experience2-3yrs Personal & Property Tax Returns – All schedulesPrevious Year and YTD Property Profit & Loss statement w/ detailed expensesRent Roll w/ detailed lease informationCopies of all Leases3mo.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Here is a simple example just to illustrate:- Invest in Syndication 1 in Year 1 for $100,000, realize $60,000 depreciation- Invest in Syndication 2 in Year 2 for $100,000, realize $50,000 depreciationThere are typically distributions that would use up some of the depreciation losses, but ignoring them here for simplicity (I have many deals that have created a lot of losses).- Syndication 1 exits in Year 3 for $150,000.

However, due to Shrewsbury’s lower tax rate (12.04), its annual tax burden is only $161,000, significantly less than its Worcester counterpart.Economic ConsiderationsThe disparity in tax rates between Worcester and neighboring Shrewsbury illustrates a financial challenge for supermarket operators.

This chart illustrates the significant shift in housing supply over the past two decades.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

The case study illustrates the potential for exponential growth through house flipping by reinvesting profits.