Completely agree with being proactive about explanations—it's a small step that can save a lot of headaches later. I've also noticed lenders scrutinize vacancy rates closely with DSCR loans. If your property had any unusual vacancy periods, it's helpful to provide context upfront (like renovations or seasonal fluctuations). Underwriters appreciate seeing you've anticipated their concerns, and it usually makes the approval process smoother...though there's always that one underwriter who finds something unexpected to question.
Definitely agree on proactively addressing vacancy periods. Another thing I've noticed is lenders often dig into expense ratios too—especially maintenance and management fees. Providing clear documentation or explanations for any unusual expenses can really streamline the underwriting process...usually. There's always something unexpected though, right?
Had a lender once question why the landscaping costs spiked one month...turned out the tenant threw a massive BBQ and wrecked half the yard. Try explaining that one without sounding like you're making excuses, haha. Always something random popping up.
"Always something random popping up."
Yeah, tenants can be unpredictable...had a similar issue once when a tenant's dog dug up the sprinkler system. Lenders definitely raise eyebrows at sudden spikes—keeping detailed notes and receipts saved me from a headache that time.
Keeping detailed notes is definitely a lifesaver, especially when lenders start asking questions. Had a similar situation myself—tenant decided to DIY a plumbing fix and flooded half the basement. Talk about unexpected expenses... Luckily, I had everything documented, so it didn't derail my DSCR loan application.
Speaking of documentation, I've found that lenders really appreciate seeing a clear paper trail of how you handle these hiccups. It shows you're proactive and responsible, which can sometimes offset minor dips in your DSCR ratio. But I'm curious—has anyone here ever had success negotiating with lenders when something unexpected temporarily lowered their DSCR? I've heard mixed stories about lenders being flexible if you can clearly show it's just a one-off issue rather than a recurring problem.
Also, do you guys typically set aside a specific emergency fund percentage for these random tenant surprises? I've been doing around 5% of monthly rental income, but lately I'm thinking maybe that's not enough...
