Eliminate debt, establish a budget, and save.

Some loans like DSCR (Debt Service Coverage Ratio) loans are based on how the property operates as a rental (income, expenses, etc). 4.

This leads to issues with refinancing and could leave you with less equity or higher debt than anticipated.

Thank you for giving me valuable insight! 

Your biggest issue with 5 bedrooms is that 50% of your income is going towards the mortgage, I do not believe banks would even lend to you with a DTI above 40-45 (mortgage + other debts).

Currently, I’m working on clearing my debt and saving as much as possible, with plans to start my journey by house hacking with my partner.

After purchase, you can do a cash-out refi of 75% of the appraised value to free up your cash again, and repeat.There's also DSCR (debt service coverage ratio) loans.

Driven by favorable interest rates and stock market performance, debt issuance has been the main capital driver.

People sometimes make bad decisions in life and you have to decide whether it is forgivable or not.

Older and less interested in risk/debt?