Tenants in lower Classes will have lower credit scores, which means higher chance of defaulting on their lease payments.

My girlfriend and I have been looking at properties over the last couple of months due to life situations changing and having a decent chunk of change saved for a down payment.

It might make the most sense to just sell your primary residence and use it as 40% to 50% down payment on your future home. 

Here are the key details of my situation:Rental Property Details (Note: This was our primary home till 2017):Current Value: $970,000 to $1MPrimary Mortgage Loan Balance: $505,000 (@ 2.6%)Took Home Equity Loan on this house to make down payment for my current primary residence.Home Equity Loan Balance: $123,000Total Loan Balance: $628K (Primary Mortgage + Home Equity Loan)Rental Status: OccupiedPrimary Residence:Purchased in 2022Mortgage Rate: 7.3%Current Loan Balance: $650KMy goal for 2025 is 2 fold: #1.

I would encourage you to learn the market you plan to invest in now and to continue to learn about the different methods of investing.

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.

The lender may figure if the borrower had this kind of money they’d be making the mortgage payments. 

I don’t see where a rental would make sense, so I’m trying to look at other options to cover the monthly payments until the market goes back up.  

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment. 

Being part Alaska Native, there was incentive where they would pay your down payment and we utilized that tool!