I am currently looking at buying a new construction home as a long term rental property. sales price $214000. first my lender told me I can do 0 down. and I am really excited about this deal. but later he told me that am not qualified for 0 down because of my income. the other option is that I can do fha with 3.5% down, 6.125% interest rate. cash to close is $14000. my monthly payment is around $1575-$1590.it can at least rent for $1700 as a long term rental property.

That FHA loan is assumable, so that might be attractive (depending on your rate).You could consider leaving the FHA loan in place and just move into a live in flip.

When tenants are so far behind, there's a good chance they can't afford market rates.

I'm aware of the vacancy rate being 6% in the SFR industry but I was wondering what percentage of units go on the market every year from your portfolio.

Just trying to figure out our options here, would love to keep the interest rate if possible for obvious reasons.

Someone at your bank, who likely never loaned a dime in his life, has decided on the restrictions they think you need to meet to comply with regulations important to him or her.What might be most convincing is a letter from your lending attorney explaining that he’s been representing you in all lending matters for 14 years (or the last x years) to ensure you comply with all state and federal rules and requirements.

I have no idea about occupancy rates, management fees etc.

I would bet good money that they are paying below market rates.In case you missed it: get rid of them.Spruce the property up, study the market to determine a fair market rate, and find a renter that is willing to pay the market rate, pay the deposit, and abide by your agreement.Not everyone is cut out to be a good landlord.

Average Rental Rates, Q1, 3br, 2ba, Single Family2024: $16822023: $16302022: $1523Average Rental Rates, Q1, 2bedrooms2024: $11372023: $10792022: $1102-John Williams, Property ManagerClarksville, TN

Here's a bit more in detail about how rates are calculated for DSCR loans:1.