Personal Income for Small MF Cash Out Refi

[Kimberly Ashkenazi]

Hello friends!

My husband and I are working hard to establish passive income from rental properties so we can gain financial freedom!  The plan is to purchase in cash (to hopefully push the price down) then do a cash out refi and repeat the process to continue purchasing properties.

To what extent is income considered for financing small 5+ unit multi-family properties? My husband and I are excited at the prospect of quitting our jobs, but we don't want to accidentally get our investors' money stuck in a property if we are turned down for a cash out refi. From what I've read, the primary factor is to how well the NOI covers the monthly debt payment.

Thanks in advance