Question 1

Can I use rental income from the property I'm buying to qualify?

Accepted Answer

Yes with DSCR loans. The appraiser provides a market rent opinion and lenders qualify you based on that income covering the mortgage payment.

Question 2

How many investment properties can I finance?

Accepted Answer

Conventional loans cap at 10 financed properties. Portfolio and DSCR lenders often allow unlimited properties if cash flow supports the debt.

Question 3

What down payment do I need for a second rental property?

Accepted Answer

Expect 15-25% down. Conventional loans require 15% minimum for a second property, while DSCR loans typically ask for 20-25% depending on credit and reserves.

Question 4

Do I need to show tax returns for investor loans?

Accepted Answer

Not with DSCR loans. They qualify on rental income alone without reviewing tax returns or employment documentation.

Question 5

What interest rate should I expect on an investor property?

Accepted Answer

Rates vary by borrower profile and market conditions. Conventional investor loans run 0.5-0.75% above owner-occupied rates, while DSCR loans add another 0.5-1.5% for income flexibility.

Question 6

Can I use a hard money loan for a long-term rental?

Accepted Answer

Hard money works for short-term projects only. Use it for rehabs under 12 months, then refinance into permanent financing once the property stabilizes.

Investor Loans in San Carlos: Finance Your Next Rental or Fix-and-Flip