Quote from @Matt Bridgman: Here are top 3 mistakes I see as a lender among investors - new & experienced:  Feel free to comment or give me your list. 3.

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

@Asher M.Possible, yes but like your lender pointed out it's going to be difficult to pass the self-sufficiency test (SST) for a legal 3-4 unit property.

Or they think we are somehow to blame and want to terminate us.- Recent example: we took a vacant property over and did our TakeOver video, then gave the owner a bid for around $10k to get it RentReady.

The plan is to use the proceeds from this rental to buy another rental property for about $650-700K, plus to pay off the home that they live in now ($260K owed).

If this is smaller than that, I dont know that there is a ton of room to increase the rent.

That being said, I don't have the information I would need to say for certain, but that sounds as if that's a high price for the asset you're considering to buy.

I had a client who kept waiting for a better rate, only to see it jump 0.5% overnight costing him thousands.

This is like buying any other property, it is valued at whatever the market is.  

Quote from @Adedotun Kembi: Quote from @Jeff Roth: Hi Holly from Georgia-You own a rental in Colorado and you are looking to purchase a new primary residence and possibly use the equity in the rental for the downpayment.You have two options I am aware of with the rental to access the equity:1.