Emily,My best advice is team up with a Mortgage Banker who specializes in DPA, CA (County & Federal) Gants as well as specialty progams.

I would avoid Washington State, Oregon and California.

I am an out of state investor located in CA.

California requires a tax return to be filed. 

My latest research has uncovered that Malcom recently (2020) moved to Huntington Beach, Ca and has opened a church.

For context, this would be part of a 1031 exchange from a California SFR into these Fort Collins multi-family units.If anyone has navigated a similar situation, especially investors who’ve dealt with a listing brokerage owning the property, I’d appreciate your insight.

Hi All,Out of state investor based in Southern California. 

I’m trying to figure out how realistic this idea is before I start talking to lenders — hoping some of you who’ve been through this can help me sanity-check it.Here’s my current situation:The PropertyLocated in California’s Central ValleyBought a few years ago from my dad for $30K (clear title)Current estimated value: around $293,500 (Zillow)Rents: $1,000 (front) + $800 (back) = $1,800/moNo mortgage, completely paid off ✅It’s been a basic rental that covers itself and stays occupied.Now that it’s appreciated quite a bit, I’m wondering if I can use it to fund my next step in real estate.What I’ve Gathered So FarI was laid off a while ago, so I don’t have W-2 income anymore — but I do have savings in the bank and this property free and clear.While researching options, I came across DSCR or “no-income verification” loans, where the lender qualifies the loan based mostly on the property’s rent and value instead of personal income.If I pulled out around $200K (roughly 70% of what the home’s worth), the monthly payment for principal and interest might fall in the $1,400–$1,500 range.Once I add property taxes and insurance, the total monthly cost would probably be close to $1,700.Since the property currently rents for about $1,800 a month total, it would basically break even or maybe make a small positive.That seems to qualify under the DSCR rules I’ve read about, but I’m not sure if that’s too thin to be worth the risk — especially with rates where they are right now.If this type of loan actually works the way I think it does, it could free up roughly $200K in cash that I could use as down payments or rehab funds to buy additional rentals.I just don’t know if that’s a smart move, or if I’m misunderstanding how flexible these loans really are.What I’m Trying to Figure OutDoes this make sense in today’s market, or would you hold the equity and wait for rates to drop?

I currently have 2 properties; one rented in California (losing $200/month) and my primary home in NM.

Derik,Indiana is a Hot Market, majority of my out of state investors in CA, NY, NV, CT and others are all buying in IN, OH, NC, TN, FL but it's hard to beat the current price factor.