Investor questions, answered.

A Debt Service Coverage Ratio loan qualifies you based on the property's rental income compared to its monthly payment (principal, interest, taxes, insurance and HOA). A DSCR of 1.0 means rent exactly covers the payment; many lenders want 1.0–1.25, and some allow lower with bigger down payments.

Conventional loans on a 1-unit rental typically require 15–25% down. DSCR loans usually require 20–25%. Buying a 2–4 unit property and living in one unit (house hacking) can open owner-occupied options like FHA at 3.5% down.

Yes. DSCR and most non-QM loans allow you to close in an LLC. Conventional Fannie/Freddie loans generally require you to close in your personal name, though you can sometimes transfer later — talk with an attorney first.

Yes. Many DSCR lenders accept 12 months of short-term rental payout history, and some allow projected income from market data tools such as AirDNA for new purchases.

Buy, Rehab, Rent, Refinance, Repeat. You buy a property below value, renovate it, rent it out, then do a cash-out refinance to recover your capital for the next deal.

Conventional guidelines cap financed properties at 10 per borrower. DSCR and portfolio lenders don't use that cap, which is why growing investors often move to DSCR loans.

Many DSCR programs start around 620–660, with the best pricing typically at 720+ .

It's general shorthand for states whose laws tend to favor property owners — for example, shorter eviction timelines, fewer rent-control rules and more flexible security deposit limits. Always verify current state and local law before investing.

Generally, mortgage interest, property taxes, insurance, repairs, management fees and depreciation can be deducted against rental income. Consult a CPA for your situation.

Yes. Long-term rentals use a landlord (dwelling fire / DP-3) policy, and short-term rentals usually need a specialized STR policy. Lenders will require proof of the right coverage.

A 1031 exchange lets you defer capital gains tax when you sell an investment property and reinvest the proceeds into a like-kind property within IRS timelines (45 days to identify, 180 days to close).

With complete documents, DSCR and bridge loans often close in 2–4 weeks. Appraisal and rent schedule timing are the usual bottlenecks.