If the answer is yes to both questions, I can almost guarantee the 20-25% equity your appraisals suggest you created will never be realized and is merely paper equity.

If you rent your home in California, it seems likely, (although not guaranteed) that both your rents and the value of your property will increase more rapidly in comparison with a lower-income / lower cost-of-living state. 

Is it debt way above the 5-6% you can get guaranteed from the bank?

Meeting the requirements one year doesn’t guarantee qualification in future years, especially if your level of involvement changes. 

View report*This link comes directly from our calculators, based on information input by the member who posted.Hi guys, I am looking to BRRRR out-of-state.

Hopefully they changed their fundraising efforts as it appears based on link above they were fined $85k by the state with their former company.

Every local bank does dscr loans, 20yr term, with 3 or 5 yr rate reset, you might be able to get 25yr term but all will require personal guarantee to start and 3 yr historical financials.

You might also consider forming an LLC to manage the property-related business activities while holding the property in your name to stay within your lender’s requirements.Explore safer rental strategies: If you’re open to short-term rentals, Airbnb’s Host Guarantee provides additional liability coverage, which may offer peace of mind while keeping the property in your name.

However, appreciation is never guaranteed, so you’d need to consider how much risk you’re comfortable taking.Pros:Potential to cash in on appreciation in the future.Flexibility between STR and LTR depending on market conditions.Cons:Requires holding costs and maintenance during the interim.No guarantees of appreciation.4.

I encourage you to check out the link I posted above for more info.