I’m working through the capital stack on an 18-unit stabilized workforce housing property in Pecos, TX (Permian Basin) and would appreciate input from investors who have closed similar 5+ unit deals in energy-driven markets.This is strictly a commercial structure question — not a 1–4 unit DSCR scenario.Property Snapshot• 18 furnished units + manager residence• Built 2017• Workforce tenancy• Stabilized operations• Permian Basin locationCurrent Deal Structure• Purchase Price: $800,000• Appraisal: $1,200,000 (as-is)• Senior Loan Target: $520,000• Senior LTV: ~43% of appraised value• Seller Carry: $280,000Seller note terms:• Fully subordinated• 0% interest• $1,200–$1,500/month principal payments• Balloon 36–48 monthsFinancials• Normalized NOI ≈ $100,000• DSCR at requested leverage >2.0x• Even under stress (~$75K NOI), DSCR >1.6xFrom an asset perspective, leverage is conservative.The QuestionFor those who have closed small-balance commercial deals in Texas:Have you seen regional portfolio banks lend based on appraised value vs strictly purchase price in similar scenarios?

Hey BP fam,Section 8 gets a lot of mixed reviews, but if you screen voucher tenants just as strictly as market-rate ones, it’s a massive cash-flow stabilizer.Here is why leaning into the voucher program is a solid strategy:Recession-Proof Income: The housing authority direct-deposits their portion of the rent every single month, no matter what the economy is doing.High Retention: Voucher holders tend to stay much longer because moving is a hassle and finding good landlords can be tough.

Even when applicants look good on paper, tenants who are already stretching their budget tend to fall behind once something unexpected comes up.One thing that helped me was being very strict about income requirements (typically 3x rent) and verifying it carefully, along with calling previous landlords and specifically asking about payment history.Late payers tend to have a pattern, so sometimes the key question is simply:“Did they pay rent on time every month?”

I’d just double-check the local STR rules and permit situation, as they can be strict in that area.

Hi @Bismark Appau, Most buyers right now are less focused on strictly following the 70 percent rule and more focused on strong cash flow and realistic ARVs.

Hey BP fam,Section 8 gets a lot of mixed reviews, but if you screen voucher tenants just as strictly as market-rate ones, it’s a massive cash-flow stabilizer.Here is why leaning into the voucher program is a solid strategy:Recession-Proof Income: The housing authority direct-deposits their portion of the rent every single month, no matter what the economy is doing.High Retention: Voucher holders tend to stay much longer because moving is a hassle and finding good landlords can be tough.

I’m holding the open house for another agent and working strictly on the buyer side.

So I'm torn on how ethical a strict minimum is (because I might be about to struggle with it) but also understand because once I get some properties, I'd definitely want to filter people out somehow. 

For the MTR side, check the HOA bylaws strictly—even if they allow 30+ day stays.

How strict is compliance enforcement?