A loan option you could look into that will potentially preapprove you for more is a DSCR (Debt service coverage ratio) loan, which is based on the rental income of the investment property you are looking to purchase, instead of based on your personal income for a conventional loan.

@Dave FosterMy interpretation is that she lived in the house for atleast 2 years but it is unsure based on what she mentioned.Mentions purchased in 2020(not sure what month)mentions rented for a little bit over a year(not sure when it is started to be rented out)

I jumped in with one property and learned as I did it.

You can't just assume a certain percentage based on the purchase price.A LOT of people get into trouble with the property tax side of things.

Hey @Marquez Cadet, We used to work with price per square footage but we shifted to estimating based on 4 tiers of size and then the 3 tiers of rehab that you mentioned.

Two people in foreclosure, 200000 people in foreclosure, doesn't mean they are motivated to sell their house just because they are in foreclosure.The whole premise of lists , or classifying and labeling people/"motivated sellers", based on their situation, is completely wrong.If dealing with a foreclosure increases your chances of motivation, how come you need to send 1000 letters to the foreclosure list to get one deal?

My wife and I came across the Bigger Pockets podcast and YouTube channel this past year and have always wanted to jump into real estate investing, so we figured with it being the new year now is the perfect time!   

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In my opinion you're unlikely to get much of a jump start by listing an empty property as a midterm rental.

But I’m trying to figure out if that loss is worth it based on the current numbers I’m paying for the property every year.