If the property is considered non-warrantable, you should still be able to do a standalone 2nd mortgage at 75-80% CLTV on an owner occupied nonqm 2nd mortgage. 

I’d rather not give up my current first mortgage rate to get cash out to renovate. 

I used bank/credit union mortgages for 80% to 97% of purchase prices. 

@Thomas T.Make me under 25 again and I'd look to acquire a 2-4 unit property with an FHA low-down payment mortgage.

I do have a mortgage currently in my name that I am in the process of having assumed, so currently my DTI is very high because of this.

By the time I reach 20% equity (likely 3+ years away), my monthly mortgage payment will come down when I refinance, but $600 is a big hit to the numbers. 

However, I had to subordinate the sellers note to 2nd position (hint: set up that language in advance to streamline the process, if that's the direction you're going to go).Since the ARV was high enough, and the potential income would support the mortgage and expenses, it all worked out. 

Hey Joanne, you’re definitely onto something with room rentals.. it can be an excellent strategy for offsetting a hefty mortgage and, in some cases, bringing in higher total rent than a single lease.

maybe they would do a subject to and have you take over their mortgage payments - do they have a good interest rate? 

Also, at this time I had seen properties selling for 10 – 20% over ask regularly.Interest Rate 30 year conventional 7%Homeowners Insurance = $1,000 annuallyRents = $1,800 per monthWhen I looked at those assumptions, I would need to put down $80,000 on this house to get it to hit my cashflow goal of $500 minimum per month which equates to 35% down.Total mortgage + escrow = $1,267.13 per month with rents at $1,800 my monthly cashflow is $532.87.From my experience, after taking out vacancy and maintenance costs you are left with around 73% of that total cashflow number once the rental is established.People have asked why a $500 per month cashflow goal.