You VA allotment can cover more than one property so not all of them have to be owner-occupied.Thanks for your post John.

Or if my landlord homeowners insurance policy will cover this?

Rent by the room gives you the opportunity to get more renters to cover the mortgage, making it easier to stabilize the asset.

The example scenario would be if I bought a $1M property, the bank is in first position and covers 800k of the property cost, the seller agrees to cover cost of down payment and covers 200k of the property cost.Let's say we can no longer make payments on the property and it's foreclosed on.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

I’m sure they cover AZ a well.

To me, any liquidity qualifies: bank letters, bank statements, stocks in an investment account that covers down payment, etc.Today, I got a letter from a hard money lender saying the buyer is approved for 1/2 the listing price of the property.

Purchase price: $273,000 Cash invested: $60,000 Sale price: $375,000 Purchased the property with a "subject to" agreement, did a cosmetic renovation, cleared outstanding condo dues, and resold the property.

Depending on how much the DSCR lender will lend on, my partners and I will cover the remainder.

We many a handful of them for our clients, and the combined rental income covers their expenses.