You want to look at paragraph 12 of the Texas purchase contract, called the 'One to Four Family Residential Contract'.

Hence, to reiterate the reason for adequate research before purchasing a property. 

You can find some 2 units under or around $250K but they have been sitting on the market for over 150 days which tells you its not a great deal if it were an investor woud have already purchased it 4 month ago.  

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Purchase price: $145,000 Cash invested: $60,000 Fully renovated 4-5 bedroom ranch on 3.3 acres.

There are other submarkets of Columbus like upper Arlington that have higher like $500 per square foot but the purchases are tear downs at $200 per square foot so the real exit is $300 or so.

Equity earns 0% interest (inflation will destroy your purchasing power) your real estate investment will Appreciate or Crash regardless of how much down payment you put on your home.

My question is: After I build the units, can I do a cash-out refi and use the equity to purchase another home? 

I sold about half my stock portfolio to purchase real estate here in January.If it's not time to buy right now, when is buy time? 

Hey bigger pockets family, I'm facing a dilemma that consists of me choosing whether or not to buy a tiny home and put it on my current home's property, creating an ADU to rent out or to save that money that I would put into the tiny home and save for my next purchase.