Came across a pretty good opportunity to buy an investment property for under market value.

    I am looking at getting a DSCR loan for the second property, and have been pre qualified by a lender for it.
    They are requiring 20% down and 6 month reserve

    I currently have about 12% down and 6 month reserve in cash.

    I was going to get a partner to co-invedt with me but they are nervous about being a landlord and are getting cold feet.
    I currently have over $200k in equity in my main home.

    I was thinking about taking out a $50k equity loan to cover the 20% down payment and have a little more in the reserves
    Home is $390k, current market value is approx. $430k

    Currently have $40k cash plus reserves
    Need $78k down payment

    Mortgage++ would be about $2500, and the rent market value for property is a minimum of $3000/month.. possibly $3200 or $3300

    $50k equity loan would be about $350/month

    Im thinking could be a way to secure another property without a cobuyer and if rates eventually go down i can refinance and have an even bigger profit margin

    Thoughts?

    Take out small equity loan to cover half of down payment required for DSCR loan on investment property
    byu/EdLeedskalnin inrealestateinvesting



    Posted by EdLeedskalnin

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