Quote from @Drago Stanimirovic: Some lenders stick to 1.20+ DSCR, but others allow lower with strong compensating factors.

I have made my own calculation spreadsheet considering all the factors that I possibly can, but I would like to use something more robust and vetted/developed by those who have experience. 

It is crucial to consider various factors to ensure accurate projections.These factors include the total loan amount, interest rate, whether the rate will be fixed or floating over the loan term, the amortization period, the loan term, and the availability of interest-only periods or future funding.

@Jay Hinrichs, with hope to close Q1 2026, what factors play into your willingness (or not) for any type of price drop to get a deal done in desired timeframe? 

Definitely agree that this region is under-served on BiggerPockets — happy to explore how local permitting and engineering factors could support additional pipeline deals here. lets hop on the phone and chat later this week I am in the mountains of Utah fishing right now.. later this week will work though

Theirs many factors on points and costs though.

These are the exact areas I dig into as well, because they quickly reveal whether someone can realistically meet the participation requirements that drive STR tax benefits.Understanding W-2 demands, average stay length, hands-on involvement, and the dynamics with a property manager tells you almost everything about how the STR will perform and how the tax strategy should be structured.Most investors underestimate how much these factors impact both their numbers and their ability to use the losses.

From an investor standpoint, when you factor in lower CapEx, warranties, energy efficiency, and potential rate buy-downs, new builds can actually offer better risk-adjusted returns than older resales.

Either for reimbursement if after the fact, or to force participation if prior.

This is due to many factors - the amount of fraud being uncovered along with very high default rates from DSCR loans from 2022 and 2023.