This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

I'd look for mortgage brokers in Canada. 

I don't know if you are referencing our 4.7 star rating on Google or 4.8 on BP or our 74 NPS rating over the ~1,200 loans we closed last year, but our customers are pretty clear, Loanbidz customers are very well taken care of. 

I had a similar idea (having one of the mortgage brokers I know underwrite any prospective buyers.

I realize that there are variables from market to market and property to property that could make VRBO more effective for a given property, but my understanding is that in general Airbnb bookings get out to such a dominant start in regard to percentage of the bookings, that VRBO and other lesser OTAs have trouble catching up.

@Jordan Miller most Class A & B rental properties bought since 2021 really don't cashflow from day one.Class B will take 1-3 years to start showing cashflow.Class A, 3-5 years.Current investors keep making the mistake of looking back at deals from 5-10 years ago when prices & interest rates were both a lot lower, but NOT rental rates.

So have another mortgage here. 

You can also expect increasing HOA fees, and there may be some problems renting a property inside a difficult.You don't have any experience, prices are at an all-time high, and rates are also high. 

Yes, that means he will have to give up his 3.5% rate (or whatever it is assuming lower then today rates) but it is what it is. 

And you are looking at an interest rate around 7% instead of over 10%.