Investing in Low-Cost Properties_ Risks & Rewards Revealed

Описание: Most DSCR lenders won’t go below a $100,000 loan amount—and some are already pushing that minimum up to $150,000. And looking ahead, the 2026 landscape is likely going to tighten even more when it comes to minimum loan sizes.

On the flip side, investors see these properties that look amazing on paper. You’re talking $30K, $40K, $60K, maybe $80K purchases that supposedly cash flow $700, $800, $900 a month. The numbers look incredible. You’re thinking, “I’ll pay this thing off in two years just from cash flow.”

But there’s a reason those deals look that good. Most of the time, they come with higher risk—deferred maintenance, tougher neighborhoods, or less desirable tenant profiles. These are typically C-class properties. You’re getting higher rent, but you’re also taking on higher risk.

That gap exists for a reason. Higher returns usually come with higher risk environments. And there’s another issue people overlook: condition.

DSCR loans still have minimum property standards. If a property comes back with heavy deferred maintenance—C5 or worse—it’s not going to work. I’ve seen appraisals come back at C6, basically saying the property is falling apart. At that point, the deal is done.

Understanding why the numbers look good is just as important as the numbers themselves.

If you want help underwriting deals realistically and structuring financing that actually works, schedule a call with @theclearclose.

The Clear Close (DBA of West Capital Lending, Inc.) is an Equal Housing Lender;
NMLS – 1566096
Jason Kim – NMLS 1680429 | DRE 02178073
Peter Ahn – NMLS 2664403 | DRE 02252395

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