obtaining loans based on income of the property

[Daniel Infante]

Hey Everyone,

This is my first post in BP. 

I started listening about 5 weeks ago awhile exercising and it has opened my eyes to the possibilities in real estate investing. I own 2 properties free and clear which I have had for about 5 years. My dad is a conservative investor and he always told me that I should buy with cash only. But after reading these posts, reading about 12 books, and listening to over 100 podcasts, I'm convinced that there is a better way. I really love the BRRRR method and I was going to try to apply that, but then I go an idea: If I can cash out of these properties at 70-80%, I should be able to get about 160k, give or take. Instead of using that to buy properties with cash, why shouldn't I use that as downpayment on investments? As long as I buy under market with built in equity I shouldn't spread myself too thin.

But I actually live overseas (Japan) and I can't really use my income to get a loan in the US.  I have heard that you can get loans based on the income of the property you are purchasing.  Could anyone tell me what this is called? I am hesitant to just call up a lender and ask them what kind of loan that is.  I at least want to know what its called and how it is generally done before approaching anyone.  

If anyone could help me out I would really appreciate it! 

Thanks in advance! 

[Guifre Mora]

Originally posted by @Daniel Infante:

I would just like to add that I am a citizen and resident in my local area, I just spend most of my time out of country and don't have the income like a w2 or anything to qualify for a loan in the traditional way.

As long as you have a us bank account that's all you need. The lender will look at the DSCR of the properties and can do 75 LTV cash out. Being over seas not an issue.