You are not spending the money this way, you are using it.Multiple uses, but a one time cost, makes the interest rate a non-factor...so long as the first investment covers the expense of its use.

Here is the story:I have 90K cashI'm looking to buy an investment property for cash flowMy credit score is great (above 800)I don't have any debtIt's the first house I'm buying Trying to get a mortgageThe problem: my income is low, 25K a year.In this conditions the banks wouldn't give me a mortgage since they say that my income minus my current rent and other expenses doesn't leave me any cash for a mortgage payment even that I would be renting out the property I'm buying and that would cover the mortgage.Any ideas how to get a mortgage with those numbers assuming I'm not going for primary house?

Live in one part of it and rent the other such that your tenants are covering the bulk of your mortgage.

Would love to get some help :)I have 90K cashIt's the first house I'm buyingLooking for an investment property for cash flowI don't have any debtMy income is only 25K a year.The banks wouldn't give me a mortgage since they say that my income minus my current rent and other expenses doesn't leave me any cash for a mortgage payment even that I would be renting out the property I'm buying and that would cover the mortgage.Any ideas how to get a mortgage with those numbers assuming I'm not going for primary house?

If the numbers work and you are confident you can cover the cash flow in a bad situation then do it.

They are on a month to month lease which we have informed them we will not be renewing for a couple reasons, the first being that they are a complete slob and are trashing the place / from the looks of it are the reason the place had bedbugs with the previous owner , the second being that they have dogs that are not covered under my insurance. 

I do recommend to use inspection, especially since I am abroad investor.In addition, the inspection report help me to make sure the contractor quote covered all major issues, and I also use the inspector to visit during the rehab to make sure the contractor finished each construction stage.Investing ~$250 in inspection in compare to the money you invest in buying and rehabbing is not major and reduce your risk.Good luck.

So in all cases but one the spread is greater than 3%, and in that case (using higher-interest bridge debt) we plan to refinance into lower cost debt by year 3 which will then create a spread in excess of 3%.Unfortunately buying commercial income property (includes multifamily) requires very sophisticated financial analysis and there are no shortcuts or rules of thumb that will give you the complete picture. 

You need humans involved in the equation to get the more accurate picture.3) The book talks about buying a property for 20% discount, and by adding 5% it should appreciate by 10% in 1 yr.

Northern California is too expensive right now to make buy and hold work--rent is really high but not high enough to even cover the cost of the mortgage in most cases.