financing for ltr properties

[Anthony O Cave]

I have seen how to raise money for flips and brrr strategy etc. However Im  a little stumped on ideas for getting funding for a rental that doesnt have a ton of value add. It meets 1% rule and is actually 4 properties 110-125k from same seller. I have my own business but only for 2 years now so most traditional lenders arent going to be of any help that I see. 2 units are rented currently for the next few months when lease runs out. Is there a type of lender that will lend in this scenario and having two units rented add as benefit to them? I have one rental now I could show details to a lender on and have rented a house previously for 4 years so not brand brand new to it. Any ideas on where I could source funding ? I could swing 10% down if I had to. Thanks !

[Robin Simon]

what your looking for is likely a "non-QM lender" - i.e. a lender that won't require a W2 and income verification from a job. Non-QM has options that will qualify you on bank statements which are typically workable for people that have their own business, but also "DSCR" loans which qualify based on the income produced by the property and are ideal for this type of situation (long-term rentals, no value-add). If you go with the DSCR option though you will probably be looking at a minimum of 20% down however