Another option is to get an interest only loan, which reduces the payment amount and thus allows for more cashflow.

One of the reason is that I would be able to put less down on the home as a down payment.

For mortgage debt, the following additional requirements must be met:the party making the payments is obligated on the mortgage debt,there are no delinquencies in the most recent 12 months, andthe borrower is not using rental income from the applicable property to qualify.

That would go based on the income of the property and your down payment/cash reserves rather than your current income.

Hey everyone,My friend and I are partnering on a deal in Atlanta where he brings 100% of the up front cash (i.e. 20% down payment and $50K-ish for a rehab) and I find the deal, manage rehab, run numbers, and am the brains of the operation (and I manage the buy/hold on the back end) and assist downstream with refinancing.

In addition, I had to pay an additional 1% down payment so that there was time for the loan to get transitioned to the final lending institution before interest accrued and exceeded the max approved credit limit before I had a chance to make a payment.

., if the housemate who’s leaving was covering 75% of your mortgage payment, that could be a major problem…but if they were only covering a small portion of the mortgage and/or they’re easily replaceable, it might not be much of an issue).Moderately important: anticipate and manage your relationship with the housemate tenants.

I provided a 25% down payment to help create some cash flow and did my best to provide documents as quickly as possible to make it easy for the lender to close on the deal.

If you wanted to invest through an LLC it would require you to purchase it as an investment property from 15%-25% down payment.

The cons - very hard to cash flow off the bat, especially with a low down payment and...