Property Management Is Secondary to Property Selection — But Still Critical

Choosing the right property manager is foundational.
They are your eyes and ears — especially if you invest at a distance.

A great property manager impacts:

• Tenant quality
• Leasing efficiency
• Maintenance costs
• Turnover management
• Eviction handling
• Long-term property condition

But even with a great manager…

Ownership still requires engagement.

Best Practice #1: Build a Relationship With the Boots on the Ground

If you're a DFY client working with Specialized Property Management (SPM), you have direct access to a dedicated asset manager.

Don’t wait for problems to connect.

• Call.
• Introduce yourself.
• Build rapport.
• Set expectations.

When you’re engaged, service improves.

Property managers perform better when they know the owner is paying attention.

Best Practice #2: Log Into Your Owner Portal

Every professional property manager has software that gives you access to:

• Income statements
• Expense registers
• Repair invoices
• Lease agreements
• Maintenance details
• Property management contracts

If you’ve never logged in, do it.

Technology can feel intimidating — but clarity creates confidence.

Best Practice #3: Perform a Quarterly Audit

This might be the highest ROI 15 minutes you’ll ever spend.

Steve shared how he once found a $289 plumbing charge that should have been billed to the tenant — not him.

That single oversight equaled an entire month of cash flow.

The lesson?

Mistakes happen.
Good companies fix them quickly.
But only if you catch them.

A simple quarterly review:

• Reinforces accountability
• Improves systems
• Strengthens relationships
• Protects your returns

Maintenance Isn’t a Problem — It’s Protection

Here’s a mindset shift:

Seeing maintenance activity means your property is being cared for.

No maintenance activity for long stretches?
That can mean deferred maintenance — which becomes expensive later.

Water damage. HVAC neglect. Small issues turning into major repairs.

A well-maintained property:

• Attracts better tenants
• Retains tenants longer
• Sells for more
• Preserves asset value

Maintenance is not the enemy. Neglect is.

Schedule Routine Property Inspections

At least annually — ideally every 6 months.

Inspection reports with photos provide:

• Peace of mind
• Visibility
• Tenant condition updates
• Early problem detection

No news is not automatically good news.

Radio silence can sometimes mean nobody is checking.

Perspective Is Everything

Two investors see the same repair invoice.

One thinks:
“Why did I buy this headache?”

The other thinks:
“My property is being protected. My tenant is being taken care of. My asset is being preserved.”

The difference isn’t math.

It’s mindset.

Real estate rewards long-term perspective and engaged ownership.

Key Takeaways

• Being hands-off doesn’t mean being disengaged.
• Trust your property manager — but verify.
• Quarterly audits can dramatically improve returns.
• Maintenance equals protection.
• Engagement strengthens your entire investment ecosystem.

Let’s keep stacking singles. ⚾

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Why they call it “Investor-Specific Financing”

• DSCR is the official name, but the framing matters.
• Conventional loans are still great (30-year fixed, strong rates) but:
• More hoops
• More documentation
• More friction
• Harder for business owners / complex income situations

What a DSCR loan is (and how it works)

• Debt Service Coverage Ratio underwriting focuses on the property’s ability to cover its own debt.
• Core concept:
• If rent covers (or nearly covers) the payment, it can qualify.
• Kevin gives a simple example:
• Rent $2,000 vs payment $1,800 → qualifies
• Even near 1:1 can qualify depending on lender guidelines.

Why this is a big win for business owners (and “interesting financials”)

• Many clients have complicated tax returns and multiple income streams.
• Conventional underwriting can feel burdensome—even demeaning—because of how intensely it scrutinizes personal finances.
• DSCR simplifies the borrower experience because it’s not about W-2 income and DTI.

LLC ownership + personal guarantee (the “clean structure” part)

• A major feature: buy in the name of an LLC (no post-close quitclaim dance).
• Still typically personally guaranteed.
• Kevin’s line worth clipping:
• “You’re the personal guarantor, but a personal guarantee doesn’t mean personal liability is unlimited.”

Avoiding the conventional 10-loan limit

• Conventional financing has the well-known 10-financed-property ceiling (often managed by splitting between spouses).
• DSCR loans:
• Don’t take one of those “10 slots”
• Can allow investors to scale further (20–30 properties possible, with increasing qualification standards as portfolios grow)

Rates, fees, and prepayment penalties (January 2026 reality)

• Historically DSCR carried higher rates/fees.
• But in the current market (January 2026), they note:
• DSCR rates can be similar to conventional
• Common caveat:
• DSCR loans often have a prepayment penalty
• Not a big deal for long-term holders (they’re not planning to exit in 2 years).

Will it show up on personal credit?

• Steve explains:
• With some lenders, yes; with others, no.
• Strategic Lending knows how to route borrowers based on that preference.
• On default and credit impact:
• Steve’s understanding: typically it would not report like a standard personal mortgage—because the loan is made to the LLC secured by the property—though consequences still exist.

What you need to qualify (simple but not “wild west”)

• Kevin emphasizes: this is not 2006-style “stated income” chaos.
• Typical DSCR pre-approval items discussed:
• Credit application + credit pull
• Proof of assets / bank statements
• Existing mortgage statements for financed properties
• Reserves: at least 6 months PITI beyond purchase/closing funds

The “new era” Moneyball stance: more conservative by design

• Their direction going forward:
• Push toward 30% down DSCR strategy more often
• Aim for a better ownership experience (less outside cash needed for property “messiness”)
• Key philosophical point:
• This isn’t about maximizing leverage; it’s about maximizing staying power.
• Closing CTA
• Kevin invites listeners to reach out with questions and book a call:
• dfy-realestate.com (Book Call button)
• kevin@dfy-realestate.com

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Book a call with Kevin and see what your personalized real estate roadmap could look like.
👉 dfy-realestate.com

Email Kevin directly: kevin@dfy-realestate.com

Learn more about DFY’s done-for-you investing approach at dfy-realestate.com

• Why Episode 138 marks the return to live podcast conversations in 2026
• Revisiting Micro-Wins to Millions with fresh investor perspective
• Redfin’s “Great Housing Reset” and what it really means (no hype)
• Mortgage rates dipping into the low 6% range—and why psychology matters more than math
• The hidden cost of sitting on the sidelines during high-rate years
• DFY transaction volume from 2022–2025 and what the slowdown signals
• How investor action during uncertainty led to appreciation, cash flow, and refi opportunities
• Why affordability is improving without a major price drop
• Pent-up housing demand and the herd mentality effect
• Why rents declined—and why they’re poised to rise again
• Political pressure around affordability and why it benefits long-term owners
• The pendulum theory: fear, greed, and slow-moving real estate cycles
• Why early 2026 may be one of the best entry points before momentum builds
• How to access Micro-Wins to Millions (audio, digital, and video book)
• Where to find DFY’s 12 years of transparent transaction reports
• Why now is the time to review your game plan—not wait for headlines

Get weekly deals, market updates, blog posts, and more delivered straight to your inbox.
👉 Join the list here

Book a call with Kevin and see what your personalized real estate roadmap could look like.
👉 dfy-realestate.com

Email Kevin directly: kevin@dfy-realestate.com

Learn more about DFY’s done-for-you investing approach at dfy-realestate.com