I am in the midst of converting my former primary SFR in Tracy, CA into a rental; my highrise condominium in Global City, Philippines (bought in 2008 for 50K is now worth 150K) is actually already cash flowing net about 500/month since using Airbnb last year.Matt's adage of "live where you want and invest where it makes sense" struck a cord with me.  

Thank you so much and if you need any help in the Metro Atlanta area please let me know.Making Global positive change one deal at a time.Kimberly Brandon

Its an advanced strategy and something your commercial banker will do for you as value add to your global banking relationship with said bank.If you just have one note and a few grand in the bank with them.. well forget it..

I'm afraid to put a pack of gum on my credit card whenever I'm in the process of applying for any kind of loan.

Hey Amber,This is Lamar George from Global Ras Enterprises LLC and I just ran across your post.

Assuming no global or economic catastrophe, I believe we will see moderate appreciation over the next 2 years (i.e. 10% cumulative).  

It is factored into the rents globally with my other utilities.

Dan,Your banker is likely referring to global debt service ratio as nearing 1.2. 

-response/answer: not to oversimplify, and please if any other investors would like to comment, markets are generally global, yes individual markets will vary, prices, neighborhoods, single family vs multidwellings, commercial, etc, but globally, I would like to say, maybe not so boldly because I do not know everything, it is a buyers market. the market is in favor of investors even thought the market is starting to recover and prices are rising. now is the time to buy10. good luck to u!

They will typically be a bit higher in rate then a Fannie/Freddie Loan and most will have prepayment penalties, but they also only cash flow the property instead of doing a "global cash flow" like Fannie and Freddie do.