Don't forget to account for the points and refinance fees you will pay for the new loan as well.

I think you need a better system for screening applicants and then holding them accountable when things get off track.2.

@Chetan Malik sounds like you have Class C and D properties.We manage Class C in Detroit, but do our best to stay away from Class D.Class C for us, goes down to a 560 credit score.

It's not like you have to have a special savings account titled "mortgage purposes reserves" that you can't use for anything else.

I will share my "Most Expensive Lesson" in the comments.To kick things off, here are ten examples of expensive lessons or mistakes in real estate investing:Underestimated Repairs: The classic pitfall where the cost of repairs and renovations far exceeds initial estimates, impacting the overall budget and profitability.Tax Liens: Failing to account for or being unaware of existing tax liens on a property can result in unexpected financial burdens.Contractor Liens: Not settling payments or disputes with contractors can lead to liens against your property, complicating sales or refinancing.HOA Fines: Overlooking or violating Homeowners Association (HOA) rules can lead to significant fines and headaches.Bad Loan Products: Opting for loan products without fully understanding their terms can lead to unfavorable financial conditions, such as higher interest rates or unfavorable repayment terms.Ignoring Zoning Laws: Investing in a property without a clear understanding of local zoning laws may restrict its use, affecting your investment strategy.Overpaying for a Property: Lack of research or getting caught in a bidding war can result in paying much more than the property's worth.Neglecting Due Diligence: Skipping thorough inspections and background checks can uncover unpleasant surprises after the purchase is finalized.Poor Tenant Screening: Failing to properly screen tenants can lead to unpaid rent, property damage, and costly evictions.Underestimating Market Risk: Not considering market fluctuations can lead to investments that don't pay off as expected, especially in volatile or declining markets.We've all been there in one way or another, facing setbacks that seemed daunting at the time.

This is not to say an experienced sponsor has bad deals, they will, but an investor typically will not only get 100% wiped out but if the company also took bonus depreciation the LP's will also have to pay that money back to the IRS, so its a double whammy (not an accountant but one may be able to chime in more on this).If you are a LP and invested in a syndication that has bridge debt, I strongly recommend you watch it very closely.

It's your job as a landlord to pre-screen potential leads (gross income, credit score, evictions or not, etc) and then only schedule showings for those people that meet your screening standards.

A thorough screening process can include background and credit checks, employment and income verification, and rental history review, ensuring that you select tenants who are financially stable, trustworthy, and likely to uphold their lease agreements.

I agree with Alecia that house hacking is generally the best way to get started, so for the moment I recommend working to get your credit score as high as possible and saving up for a 5% down payment.

I am working with my accountant and CPA to ensure this works and the have suggested this path forward.