Rental Underwriting Matrix
| Requirement | Investment Property Guidelines |
|---|---|
| Minimum Downpayment | A strict, mandatory minimum of 20% down is required for all purely rental properties. |
| Rental Revenue Offset | Lenders allow 50% to 75% of projected rental income to offset the property's carrying costs during debt-ratio calculations. |
| Appraisal Requirements | Must include an expert Market Rent Assessment (Schedule L) to mathematically prove revenue potential. |
Portfolio Optimization Strategies
Investors can choose a Fixed-Rate Mortgage to lock in predictable, structured monthly cash-flow equations, or select a Variable-Rate Mortgage to protect themselves with lower prepayment break penalties if they choose to flip or sell the asset early. Purchasing properties with existing, legal multi-unit configurations (like a duplex or triplex) enables you to stack rental offsets and qualify for a higher total purchase price.