Whether it's your first rental or your tenth, I'll help you structure the financing so the deal actually works.
Every investor's situation is different. Here are the most common strategies I work with, and how I approach each one.
Buy and hold. Steady cash flow, appreciation over time, and tenants paying down your mortgage. The bread and butter of wealth building.
Higher income potential, more management. Financing is different here because lenders look at projected nightly rates, not just long-term rental comps.
Live in one unit, rent the others. The easiest way to get into investing because you can use owner-occupied financing with as little as 3.5% down.
Run the numbers →Buy, rehab, rent, refinance, repeat. I help with the initial purchase financing and the cash-out refinance that lets you pull your capital back out and do it again.
DSCR stands for Debt Service Coverage Ratio. It's a loan product designed specifically for investment properties. The big difference: qualification is based on the property's income, not yours.
That means no W-2s, no tax returns, no employment verification. If the property's rental income covers the mortgage payment (and then some), you qualify. This is a game-changer for self-employed investors, people with complex tax situations, or anyone who wants to scale without their personal income being the bottleneck.
The ratio is simple: monthly rental income divided by the monthly mortgage payment (PITIA: principal, interest, taxes, insurance, and HOA). If your property rents for $2,000/month and the full payment is $1,800/month, your DSCR is 1.11. Most lenders want to see at least 1.0, and better rates kick in above 1.25.
Not sure if your deal pencils out? I can run the numbers with you before you make an offer. That way you know exactly what your financing looks like before you're under contract.
Conventional investment loans typically require 15-25% down and full income documentation. They usually have better rates, but your debt-to-income ratio limits how many properties you can finance. Most investors hit a wall around 4-10 properties with conventional loans.
DSCR loans let you keep going. No DTI limit, no income documentation, and you can hold them in an LLC. The tradeoff is slightly higher rates and larger down payments, but for serious investors scaling a portfolio, it's the path.
If you have strong W-2 income and good debt-to-income ratios, conventional financing on investment properties gives you the best rates. I'll tell you which approach makes more sense for your situation.
Already own a property with equity? Pull cash out to fund your next deal. Works with both conventional and DSCR programs depending on your situation.
Whether you're analyzing your first rental or scaling to 20 properties, I can help you figure out the right financing.
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