Loans or lack thereof don’t impact tax calculations—only net profit matters.

Sorry for the following Contrarian advice, but you're not a 5 year old so:The only reason to buy a personal residence (Home) is because someone is forcing you to.Usually, this person is called your Spouse (which is Latin for someone who forces you to make horrible financial decisions then criticizes you for them endlessly:)perhaps DON'T buy a home, just rent something affordable and invest the 20% or in your case 50% into the stock market (sp500 16.1% yearly return last 15 years, 11% last 50 years, 10% last 125 years)remember, your RENT is your maximum monthly housing expense, but your Mortgage is your minimum or starting monthly housing cost, it always goes up from thereI've, owned 2 personal homes, 100% appreciation in 6years on #1 and in 7 years on #2, (I timed our market perfectly both times), with 20% down and very low mortgage rates, but after honestly calculating all expenses, only made about 5-6% a year "investment wise".

To start your first BRRRR investment, define your investment criteria, focus on submarkets with favorable cash flow and rehab costs, build your team, analyze deals using tools like BiggerPockets BRRRR calculator, and start small.

(Full disclosure: almost always I used an agent.)Start by doing your first deal as an agent in order to get a better understanding of the business, then calculate your overhead/ operating expenses and you will quickly see what we’re all trying to tell you.

BiggerPockets has a STR calculator that can help you know what are expenses to expect that may come in handy! 

This book is full of resources and education and if you order before 12/1 you get the best value because it includes ✅ Access to a live Q&A with James and gets his “The Flipping Workbook”✅ Sample Statement of Work✅Buy Box Worksheet✅James's Flipping Calculator✅Core Team Members Worksheet✅Tool Kit✅Glossary of Terms✅One person wins a giveaway: Free Pro Membership, All of Project RE content, Education, and Weekly calls with James & his communityOrder it paperback, hardback, audio, or ebook.

There are stated or no income 2nd mortgage loans but typically these are fixed term and fixed payment type second mortgages meaning the interest rate usually doesnt fluctuate like a HELOC or home equity line of credit would fluctuate (prime + margin = annual rate calculated based on a monthly basis). 

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.