It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I don't have a single client with >3 Bay Area mortgages that has the day-job income to support those 3 Bay Area loan amounts (we're talking $1m to $5m in debt here, easily), so yes it's certainly possible.

Either you need to increase the value or pay down more debt.

I'm researching various company options for HELOCs, and came across https://www.patchhomes.com/faqHere are a few highlights:We offer a debt free alternative to home equity loans and HELOCs.

Thanks Abel, I guess looking for a partner is the best way to go around this.Thanks for your comment Thomas and Amit, but I've read plenty of books that talks about how people in debt were able to buy real estate and became millionaire real estate investors.

One of the factors lenders use is called your Debt-to-income ratio.

I've seen typical numbers of 1%-2% higher than your current rate when it adjusts.Most financial advisers will recommend against having varying interest rate debt....which is exactly what a HELOC is. 

To get a better idea of your financials on the property calculate your debt repayment based on a hypothetical 100% financing ($400K) and deducting 50% from the rental amount for expenses.

I am new here looking to get started in the Wholesale scene of Tampa, FL (in hopes of relieving some of my student loan debt).

Also, a negative cashflow property will have a negative impact on your debt to income, making it more difficult to get further financing while you are waiting for the Austin market to increase rent.