This is something I'd consider in the future.Out of state investing:- Nevada has low property tax rates. 

What are the terms (payment amount, interest rate, duration, etc.) of the existing financing?

Hi Chandana, This looks okay, I would say you could definitely get a better rate with 30% down on a DSCR loan.

@Joseph DaviniI agreeBut I wonder where all the “housing shortage” folks and “interest rates coming down prices will double” people are?

However, the revenue hasn't matched the growth rate.

Loan to _______________________________________ Balance $____________________________ Interest rate: _________ %, Monthly Payment $___________________ Loan Number _____________ Date last payment made____________________________ Loan current through _________________B.

A way to account for the additional borrowing (or in this case effectively a cash gift towards down payment) is to attribute an interest rate to the $500k (or even an interest free loan over 30 years).

The numbers give you a range of values for discussion/negotiation purposes, but in reality a deal like this isn't a market rate deal because there isn't a broad "market" for a property like this.

AlabamaEffective Property Tax Rate (2019): 0.37%4Typical Home Value (2022): $189,9766Annual Taxes on Home Priced at State Typical Value: $702.9The current metro area population of Montgomery in 2023 is 374,000, a 1.91% increase from 2022.

The Programs includes or covers:- Up to $2.5B in second loan purchases- A maximum programs duration of 18 months- A maximum loan amount of $78,277- A minimum seasoning requirement on the first mortgage of 24 months- Only for Primary ResidencesThe effect of a guaranteed government backed second mortgage for homeowners would be significant and likely put eligible second mortgage terms in line with below market FHA and guaranteed first position mortgage rates.