Your Tenants are Qualifying Your Next Deal

[Joyce Ann Magallanes]

Sharing this because I keep seeing investors sit on equity or pass on rentals simply because they assume their W-2 situation will hold them back.

DSCR financing qualifies on the property's cash flow, not your personal income. That opens up two plays worth knowing about.

Cash out refinance up to 80% LTV*. Pull equity from a rental you already own and redeploy it. Minimum 720 FICO on this one, so your credit profile needs to be clean, but if it is, this is one of the faster ways to free up capital without selling. 

Purchase financing up to 85% LTV*. Get into a new rental with less money down and let the rent cover the debt service. No tax returns, no income verification, no W-2 required. 

Both are available on investment properties only. The property has to cash flow, that's what the underwrite is built around.

Anyone here using DSCR to scale right now? Curious what the experience has been on the acquisition side versus refinance.

*Rates, LTV, and program terms are subject to change and vary based on borrower credit profile, property type, and market conditions. Not all applicants or properties will qualify.