What I will do is attempt to find a QUALIFIED substitute tenant, credit the original tenant with the rent paid by the new tenant LESS one or two months fee for the extra work and effort, but I will NOT release the original tenant from liability should the substitute tenant default.Look, the bottom line is that renting to tenants is a business, just like any other business.  

I definitely qualify for a good chunk, but trying to decide if it's better to get an interest only HELOC or a P and I HELOC.

Real estate, by default, is passive and the primary way to avoid the passive loss rules is to qualify as a real estate professional.Full-time employees and non-real estate business owners cannot qualify as a real estate professional (aka REPS status) because one of the tests is to spend more time in real estate than anything else (and it’s unlikely that you can convince the IRS or Tax Court that you spent more time in RE than your day job).

@Theresa Rivard Typically, to qualify as a guarantor for a DSCR loan you will need to own at least 20% of the borrowing entity on title.

Builders, house flippers, brokers, etc.Unfortunately, banking and finance services and certain architect and engineering services don't qualify.

I literally do the same thing: I don't waste my time showing someone a house that they're not going to qualify for, if they even show up for the showing.

Unfortunately you will have to qualify using market rents, if you want the better rate.

To qualify for material participation, you generally need to meet either the 500-hour or 100-hour rule.

But Banks only fund the very well qualified generally no way a beginner is getting bank financing unless your basically borrowing your own money. 5.

Down payment can be higher than primary, but the good thing is that you won't need that much income to qualify because lenders can you 75% of the market rents for the units of the property.