Dwayne Mitchell NMLS #151116

07/03/2026

06/30/2026

443.468.1951 [email protected]

06/04/2026

Always wear your seatbelt!

05/28/2026

Repairs are not the same as capital expenses.

Many investors lump every property dollar into one big bucket: “renovations.”

But that can create a problem.

Some spending simply keeps the property functional.
Some spending actually improves the asset, increases income potential, or supports long-term value.

That distinction matters.

Repairs usually restore or maintain the property:

Fix the leak.
Patch the wall.
Replace what broke.
Keep the property livable.

Capital expenses are different.

CapEx should improve the asset, extend useful life, increase rental appeal, support higher income, or strengthen resale/appraisal value.

The mistake is treating every repair like it creates value.

Spending money does not automatically mean you created equity.

A smart investor asks:

Did this dollar protect the asset?
Did it improve income potential?
Did it reduce future risk?
Did it support long-term value?

Fix what is broken.
Invest in what creates value.
Know the difference before the money leaves your account.

Focused Funds Group
Focusing on Your Success.

Educational content only. Financing subject to lender guidelines, borrower qualification, property qualification, and program availability.

05/27/2026

Day 6 — Vacancy Is Not an Accident. It Is an Underwriting Line Item.

A rental can look profitable when the numbers assume 12 perfect months of rent.

Real underwriting should account for tenant turnover, lease-up time, marketing downtime, minor repairs between tenants, and ordinary vacancy risk.

Before you make the offer, build vacancy into the numbers:

Gross scheduled rent
minus vacancy allowance
equals a more realistic income picture.

The goal is not to be negative. The goal is to protect the deal before small issues become cash-flow problems.

Underwrite for reality.

Educational content only. Financing subject to lender guidelines and borrower/property qualification.

05/26/2026

Reserves matter because cash after closing can strengthen an investor loan scenario.

Reserves are liquid funds available after the deal closes.

They help show that the borrower can handle:

Vacancy
Repairs
Payment shocks
Unexpected expenses
Multiple-property obligations

Some lenders measure reserves in months of PITIA or monthly payments.

Example:

Monthly payment: $2,000
Required reserves: 6 months
Reserve target: $12,000

More reserves can make a file more comfortable for a lender because they show liquidity and stability after closing.

A stronger loan file is not always just about credit score or property value.

Liquidity matters.

Focused Funds Group
Focusing on Your Success

Educational content only. Financing subject to lender guidelines and borrower/property qualification.

05/25/2026

LTV tells investors how much leverage is being used in a deal.

LTV stands for Loan-to-Value.

It compares the loan amount to the property value.

Example:

Property value: $200,000
Loan amount: $150,000
LTV: 75%

A lower LTV usually means there is more equity in the deal and less risk for the lender.

For investors, LTV matters because it can impact:

Pricing
Loan options
Required down payment
Cash needed to close
Overall risk

The goal is not just to get the highest loan amount possible.

The goal is to structure the deal so the numbers still make sense.

Focused Funds Group
Focusing on Your Success

Educational content only. Financing subject to lender guidelines and borrower/property qualification.

05/24/2026

DSCR answers one simple question:

Does the rental income support the debt?

For rental investors, lenders often look beyond personal income and focus on whether the property can carry its own payment.

A strong DSCR scenario usually starts with:

Rental income
Debt service
Taxes
Insurance
Vacancy assumptions
Real-world operating costs

The goal is not just to buy a rental.

The goal is to buy a rental that can support the financing structure.

Focused Funds Group
Focusing on Your Success

Educational content only. Financing subject to lender guidelines and borrower/property qualification.

05/23/2026

Cash flow and profit are not the same.

A rental can look good on the surface and still underperform once you account for vacancy, repairs, maintenance, capital expenses, property management, and debt service.

Smart investors underwrite for the real numbers — not just rent minus mortgage.

If you buy based on true cash flow and true profit, your portfolio becomes stronger, safer, and more predictable over time.

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