Debt Service Not Paid by Property Cash Flow

[Jay P.]

If you pay your debt service from money earned outside of the property's cash flow [W2 income], do lenders consider that or do they look at the numbers from the property as all inclusive to the property?

[Kelly Edwards]

@Jay P., 

Your question points to "where" the debt service come from and do lenders "care".

It's always important to lenders - and for the success of your particular investment for that matter - that the property supports itself from a cash flow perspective (ie, positive net cash flow). That would be my primary concern if I were you. In that regard, and speaking as a former commercial lender, yes it matters. However, the fact that you (are implying) have additional supporting W2 income - likely from your day job - would be a supporting factor in from a global lending perspective.

Good question. Hope this helps.

Kelly Edwards

The Edwards Companies