We are a growing market with low unemployment but you will see a lot of the rental income going to covering expenses and setting aside reserves. 

As lenders, well issue a prequal/preapproval letter if we've analyzed your income, assets (bank and brokerage statements to establish that you have the liquidity to afford the down payment, closing costs, and reserves), review credit of the guarantors, review the relevant experience to ensure that we're not throwing our money away on newbies that are wandering around in the dark, and have put together a reasonable plan of attack for the project.

Real estate is a very capital intensive industry and if you do not have the money the odds of success are very low - it is no different than starting any other business - how many people do you know are successful when they start with zero?

A tax account ensures nothing is accidentally spent elsewhere, and a marketing account makes sure lead generation is always prioritized.From a credit perspective, connecting credit cards to these accounts on autopay helps you manage spending responsibly while playing the credit game.

It's very user-friendly, low cost and allows the option to add team members to projects and tasks. 

From there, it's normal DTI/Credit/Cash assessment for the new loan to determine whether you can afford the loan. 

If they do not qualify because of poor credit or income issues compared to being self employed etc there are differences - but typically people don’t qualify due to poor credit and people will seller finance to these borrowers thinking they woke up at a holiday inn and got a finance degree when in reality they repeat their past mistakesRemember the definition of insanity is doing the same thing over and over again expecting a different result

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

I've had low returns but in general all have made money.

Choose a multifamily or single-family investment approach, consider low cash flow priority, and monitor interest rates and seasonal timing.