I am currently looking for a small local bank or credit union that issues lines of credit collateralized with investment property.

Your credit will drop if you don't use credit.

Thank you very muchJaša This is how traditional banks, private credit funds and anyone in the lending space works.The challenge you will have is finding someone to give you money at X%. 

For your first commercial deal, your best home is probably going to be with a local community bank or credit union. 

These include accidents (I recently had 2 units destroyed by fire), natural disasters (I have had two units each hit by 2 hurricanes), property management turn over (they sell or stop being as good, I have experienced both), or turn over of team (I am turning over at handyman and I suspect plumber), or just wear n tear of property (slab leak in poor location, sewer pipes rotted out (one unit this month), roof, foundation issue, etc.).  

@Ali Mol In a lease-to-own agreement, the $1,666 monthly credit should be treated as a liability (deferred credit) rather than rental income, as it is allocated toward the purchase price.

They are farily easy and do nto require much to get started and the Max LTV is going to be 75% but I have seen some exceptions to 80%.Rates are subject to a few thing like loan amount, property type, number of units, credit score and downpayment.DSCR allows you to purchase with No employment and No tax returns so its a little easier. 

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Great credit scores and plenty of income from my W-2 source. 

When getting a DSCR loan whose credit score is the lender going to use?