Question regarding brrrr and piti requirements

[Azzeaz Saleh]

How does someone do so many brrrr without the lender requiring 6 months piti on each property. 

[Jerry Padilla]

@Azzeaz Saleh

Here are the requirements for reserves; (typically less that 6 months PITI, so that might be an overlay)

Reserves aren’t just cash on hand. You can use retirement accounts, whole life insurance policies with cash value, stocks, and bonds as well. 

Cash Reserve Requirements;

6 months PITI is required on subject property.

If you have 1-4 financed properties, - 2% of all upaid principle balances

If you have 5-6 financed properties, - 4% of all upaid priciple balances

If you have 7-10 financed properties, - 6% of all upaid priciple balances

Money must be in account for 60 or sourced! A HELOC can be used as a down payment, but not as reserves.