Most of my clients run their SFRs at a 25%-30% (excluding vacancy/credit loss) operating expense margin and most of the banks I deal with on their DSCR loans underwrite using 35%.

For first-timers, leveraging programs like down payment assistance or FHA loans can make a big difference.

Of course, many investors bend/break this rule, but that's another risk.2) If your bid wins the foreclosure auction, you then have to deal with getting rid of any occupants - who may steal/damage everything they can in retaliation:(3) You MUST have a great crew on the ground that can minimize surprises - not easy to do on your first deal.Regardless if you buy a foreclosure or other property, read our copy & paste advice below:-----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Quote from @Loan Nguyen: Im newbie in real estate investing.

what i'm finding is that, if i BRRRR successfully and then refinance into a DSCR loan, almost every property is break even or slightly negative. 

@Tanner Lewis, is right, if you want to consolidate all of that debt into one loan then place all the debt so it is secured by the property, sell the property and 1031 into another property with one loan.

I would probably structure it as debt like a loan and possibly break it up into quarterly payments or whatever you think will work best for you as far as repayment. you can get creative....

Buyer of note thinks seller still carries the insuranceWe sold a loan once to someone and a few months after we sold it the buyer of the loan called us asking for a copy of our insurance.

One thing to watch out for is the financing aspect of it - could be a hurdle getting a loan if the transaction is "non-arms length" - i.e. between "Friends" - might be worth looking at seller financing too

This involves assessing the investor’s financial situation, investment strategy, and the specific projects they wish to undertake.