§Guides
01All guides
Each guide opens with a two-to-four sentence answer, then explains the reasoning behind it.
DSCR is the monthly rent divided by the property’s total monthly housing payment — principal, interest, property taxes, insurance and any HOA dues. A property that collects $2,400 in rent and carries a $2,150 payment has a ratio of about 1.12. Most wholesale programs want the rent to cover the payment with a margin, so the ratio becomes the single number that decides whether the file is viable.
Read the guideArizona puts a primary residence and a residential rental in different legal classes, and only the primary residence receives the state homeowner rebate. If the seller lived in the house, their bill is lower than the bill you will pay as a landlord. Underwriters do not all estimate the post-sale tax the same way, so budget from the rental-class number rather than the seller’s bill, and ask how the program you are using calculates it.
Read the guideArizona state law restricts cities from banning short-term rentals outright, but it does not make them rule-free: cities register and license them, enforce noise and safety ordinances, and some limit occupancy or party-house behavior. HOAs can prohibit them entirely, and condominium documents often do. For financing, a property that depends on nightly income is underwritten more conservatively than one with a twelve-month lease, and the local permit plus platform history are the documents that matter.
Read the guideA remote purchase works when the due diligence that cannot be done from a desk is delegated to people who are physically there — an inspector, a roof contractor, a property manager and a title officer — while the decisions that must be yours stay yours: price, rent support, reserves and entity structure. Financing is the easy part if the property covers its payment and the paperwork is complete.
Read the guideA DSCR file is simple on the arithmetic and detailed on the documentation. Underwriters want to see that the entity exists and is in good standing, that the person signing is authorized, that reserves are liquid and documented, that insurance is bound for investment use, and that the rent is supported by a lease or a rent schedule. Most delays are not credit problems; they are missing pages.
Read the guideA cash-out refinance replaces the existing loan with a larger one and pays you the difference. The property is re-underwritten at the new loan amount, so the coverage ratio falls even if nothing about the rent changed: you are asking the same rent to carry a bigger payment. It makes sense when the pulled equity goes into another income-producing asset at a better return than the debt costs, and it is a poor idea when it is funding a lifestyle.
Read the guideA conventional investment-property loan qualifies you: your income, your tax returns and your debt-to-income ratio. A DSCR loan qualifies the property: its rent against its full monthly payment. Conventional financing usually costs less when your returns show the income cleanly. DSCR financing usually costs more but closes in an LLC, skips the personal income file and keeps working as the portfolio grows.
Read the guideHard money is a short-term loan sized to the property’s value and your renovation plan; it is built to be paid off. A DSCR loan is a long-term loan sized to the property’s rent; it is built to be held. On an Arizona fix-to-rent deal the two usually work in sequence: hard money or a bridge loan funds the purchase and rehab, and a DSCR refinance replaces it once the property is leased.
Read the guide02How to use these
The guides are organized around decisions rather than keywords.
Send the address and the rent. We will do the arithmetic on the actual property and tell you what the file needs.