Chasing Financial Freedom

Here is what nobody tells you going in. When your DSCR lender orders the appraisal, the appraiser gives their opinion of market rent. Not what your tenant is actually paying. And here is where it gets complicated.
Some lenders take the lower of the two numbers. Some will accept the higher. And some will allow a percentage above market rent to determine the final rent value used in your DSCR calculation.
Every lender is different. Every overlay is different. And that difference directly drives whether your deal closes or falls apart.
Guys, this is exactly why you talk to your broker before you close the hard money. Not during the DSCR refinance. Before.
Three things you stress test on the front end.

ARV. Get comps. Confirm the neighborhood supports that number
Timeline. Make sure you have enough runway to rehab, stabilize, and close before extension fees stack up
Rents. Find out exactly how your lender treats above market leases before you are locked in

One conversation saves you $30,000 to $40,000 at the closing table.
Did you know lenders treat above-market rents differently? Drop YES or NO below.

Your lender just asked for an extra $10,000 at closing. Here's why.
740 credit score. Four investment properties. $1M in outstanding balances. Sounds solid — until your lender requires 1% of that balance sitting in your bank account at closing.
That's $10,000 in reserves. On top of everything else.
Not every lender does this. But it's happening far more often than anyone is talking about right now — because rents are cooling and lenders are tightening faster than most investors realize.
When they sense a correction coming, reserve requirements go up. And investors get surprised at the closing table.
Know what your lender is running before you get there.

Has a lender ever hit you with a reserve requirement you weren't expecting?

Drop it in the comments, I read everyone.