When you first approach the homeowners about helping them out of their property, you'll want to let them know that you aren't going to save their mortgage you're just trying to give them a clean escape from having that defaulted mortgage on their credit.

Unlike traditional banks, which focus heavily on personal credit and income, portfolio lenders prioritize the cash flow of your property.

with that said, should you increase your down payment to mask flaws in an otherwise terrible deal - an alligator that will eat you alive with deferred maintenance that is in a worse neighborhood than you think, but an agent sold you on it because it has new countertops? 

For me A or B grade means that you can get a tenant with a 700 plus credit score with an income well above the minimum threshold. 

Both of these financing can be obtained as long as you have good credit. 

Screening tenants well and then a security deposit or credit card hold process in place will limit liability.

It would not be a terribly profitable industry, and a few large players (hopefully including my NewCo) would dominate the space.

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

In some cases they cannot pull the money out because it is now (Non-owner occupant) an investment and their credit union or bank may cap them at 70% or 75% MAX LTV.Nothing wrong wiht putting 10% down on a primary but look at the rates on both 5% and 10% usually when you have PMI built in the rates stay the same.