In a signifant change in lending standards, underwriters are now counting rental income toward income qualification. Since Las Vegas properties are all cashflow positive, it means you only need a down payment and a 700 FICO score to buy an income property.
$149,900 Sale Price
As I mentioned in the opening, underwriters are now counting rental income toward income qualification. Since Las Vegas properties are all cashflow positive, it means you only need a down payment and a 700 FICO score to buy an income property.
Previously, lenders required the borrower to have enough income to support the property as an empty stucco box. Now that they are counting the rental income toward qualification, the income requirement is essentially removed.
It just got a lot easier to buy income property.
I am in escrow to sell the second income property to a local cashflow investor. Having gone through the process twice now, I have identified ways to make the decision easier by adding value to the property package.
Below is an example of the new property packages I prepare for each cashflow property. It includes the following:
- Four page executive summary
- Estimated HUD showing all closing costs plus the down payment required to close the deal.
- A copy of the signed lease.
- The management contract.
- An inspection report showing the physical details and condition of the property.
- A draft of the purchase and sale contract.
My goal is to eliminate any surprises and provide the most accurate representation of the product. I prepare each property as if I were going to buy it myself because I do buy some of them. We don't cut corners on the renovations. We want to deliver a quality product which performs as we state with the fewest number of management headaches. My properties may not be the lowest priced on the MLS, but they are all high-quality rental homes prepared to deliver years of solid financial performance.