Lenders for Non-US Resident Investors

[Daniel Mulberry]

Hi

What is the best bet for an overseas investor wanting to take a mortgage for rental property in the US?  

(To be clear, I am a US Citizen.  I currently own a home in USA with a nearly paid off mortgage from a Credit Union.)  

I would like to start buying SFH or small Multi-family properties for cashflow investment. I should have realized this earlier, but my CU just informed me that they cannot underwrite an investment loan if I am not in-residence. They also checked with affiliate lenders and Fannie/Freddie who said the same thing.

I could do an all cash purchase fairly easily, but the cash on cash return gets so low at that point to be less attractive.  Not to mention that it would be then end of my ability to invest for a while as opposed to being able to assemble a small portfolio with leverage.  

What do people in this situation normally do for lenders?  I'm sure there are options, but honestly not quite sure where to look.

Thanks!