We use a construction loan to build a 4bed 4 bath cabin.

Hi Amanda, I think this is where most borrowers get confused on a DSCR loan.

@Adam Newman yeah, not understanding your statements, "I have $50k plus about 7k in the bank" and "take out a loan and go in with 20% from the start?".

HELOCs are fine, but keep in mind that you really only want to use 50 percent of less (each) of your available equity just so you aren't creating a problem that you can't solve later if the value of your personal residences fluctuates.If you both have W2 jobs though, have you looked into getting qualified together and just getting a loan, 10 percent down each?

You borrowed $388k and you’ve paid your loan down to $384k with your $30k in payments.

I've helped people with SBA loans to purchase real estate for a business, but for buying rental real estate, the DSCR loan is a much better option.

Most DSCR loans allow LLCs to hold title and sign the note.

Give me a shout if you have questions, but here's the short of it.Best financing is going to be from a bank or a conventional construction loan.

People reinstate the loans and do loan modifications all the time.

Lastly the real estate agencies and FTC and state AG's are really starting in earnest to finally crack down on Wholesaling the latest article on We BUY ugly HOUSES brought it to light in a big way..