Purchase price: $330,000 Cash invested: $16,500 We purchased in 2021.

Now that you are behind the bank has to put this as a liability on their books and have $400k cash set asideBanks only require 10% reserves typically so that $400k is stopping them from lending approx 3.6M in loans 3.6M at 7% is a big number and will lose a lot more from this than $10-$20k on your loan.

Obviously not every property is going to be a home run but a lot of deals I've analysed have struggled to be cash flow positive after crunching the numbers.

If I have a ground up build I paid cash for, can I use a DSCR loan to take a mortgage out on that house to build a rental home on a lot we have next door?

If you can afford to hang on to it, do some value add and be okay with less than ideal cash flow for the first few years, you should still do fine, but most people want that instant cash flow.

You may get high taxes in NJ and lower cash flow to start, but you will get a groundswell of appreciation if you do it right.

Are you cash flowing the property?

I don’t have that cash flow. 

Pay your house off then only buy investment properties in cash. 

Their father agreed to pay cash for it and my friend and I are now paying him back over the course of 6 years.