Investing there way UP, via leverage, to a place in life where they have compiled millions in equity position so they can consolidate down to the "Dividend" phase of life. 

With $50K and a DSCR loan, your budget will likely cap at properties in the $150K-$170K range, depending on the closing costs and any repairs needed.

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

@Kayla Elliott  Hi Kayla - this was a commercial mortgage loan with a local bank, that held it "in house" after it was issued. 

The lenders that offer the 203k renovation loan are telling me that DPA cannot be used with it and this is in Ohio.

My mother-in-law is saying that my wife needs to sign off on the loan.

Before you press on, maybe take a break and consolidate. 

Doing an unsecured loan is a horrible idea. 

Is it smart to take out a 40 year loan to get some cash flow?  

Hi John,No cap on the amount of DSCR loans you can get.