.🔹 Example in Action:Rental income: $9,000PITI: $9,500 → DSCR <1 (not qualifying)Using $63,000 in assets → Adds $1,045 in incomeNew DSCR >1 → Higher LTV (80% instead of 75%)🔹 Why This Matters:✅ Helps investors qualify for better financing✅ Increases borrowing power and flexibility✅ Allows you to scale your portfolio fasterUnderstanding financing tools like this can be a game-changer for investors looking to maximize opportunities.

In certain situations—especially with motivated sellers—this can be a way to structure a deal with little money down and flexible terms.

High-volume investors should diversify their funding sources to maintain liquidity and flexibility.- Institutional Capital & Private Equity: By moving from hard money to institutional financing, you can secure larger credit lines with better terms.

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.

Reforming these definitions can open avenues for co-living arrangements, providing more flexibility for investors and addressing housing affordability issues.Key Takeaways for InvestorsStay Informed: Understand local zoning laws and how they define household occupancy.

@Joshua MartinSince you might sell next year, a HELOC is probably the better short-term option—lower upfront costs and flexibility to pay it off when you sell.

It gives you the flexibility kind of like a credit card that allows you to borrow a certain limit and withdraw funds as needed.

Negotiating a lower price to account for these issues could be an option, but if they’re not flexible, it may be best to explore other opportunities.Happy to connect if you’d like to discuss further!

Short-term rentals (STRs) are highly regulated, particularly downtown, so areas like Mount Pleasant, James Island, and North Charleston may offer more flexibility.

If so, consider adjusting your rent or offering incentives like flexible lease terms.