Why Invest in Rental Properties?
Build long-term wealth through passive income and property appreciation
Monthly Cash Flow
Generate passive income from rental payments that can exceed your mortgage payment.
Property Appreciation
Real estate historically appreciates over time, building equity and long-term wealth.
Tax Advantages
Deduct mortgage interest, property taxes, insurance, repairs, and depreciation.
Investment Property Loan Options
Conventional Investment Property Loan
Standard financing for investment properties with competitive rates and terms.
- Down payment: 15-25%
- Credit score: 620+ (680+ for best rates)
- Up to 10 financed properties
- Fixed or adjustable rates
DSCR Loan (Debt Service Coverage Ratio)
Qualify based on the property's rental income, not your personal income. Perfect for investors with multiple properties.
- No income verification required
- Down payment: 20-25%
- Unlimited number of properties
- Faster approval process
Portfolio Loans
For experienced investors with 5+ properties. Flexible terms and higher loan limits.
- Finance multiple properties at once
- Flexible underwriting
- Higher loan amounts
- Relationship pricing
Investment Property Success Strategies
🎯 The 1% Rule
Monthly rent should be at least 1% of purchase price. Example: $300,000 property should rent for $3,000/month for positive cash flow.
📊 Calculate Cash Flow
Rent - (Mortgage + Taxes + Insurance + HOA + Maintenance + Vacancy) = Monthly Cash Flow. Aim for $200-500+ per unit.
🏘️ Location Matters
Focus on areas with job growth, good schools, low crime, and strong rental demand. Research rent-to-price ratios in your target market.
💰 Build Reserves
Keep 6-12 months of expenses in reserves. Budget for vacancies, repairs, and unexpected costs. Property management typically costs 8-12% of rent.