Equity Requirements for Turning an OO SFR to a Rental

[Tim Kirkland]

Hi all,

I was wondering if there is a "standard" requirement for equity in a property that lenders would require before allowing a property be turned over to a rental. For example, if i were to purchase a rental property i believe the standard downpayment would be 30% for lenders to approve of it. (based on discussion with lenders on multifamily deals, not sure if same for SFR)

If i were to purchase an SFR with a downpayment lets say at 20%, is it assumed that most lenders would require my equity in the property to reach that 30% threshold before allowing it to become a rental? Does it vary based on the lender? Is there a duration of owning the property piece to this? i.e. 6 months... What is your experience with this?