Lesson 1Mortgage insurance, jumbo loan triggers, and investor loan overlays to be aware ofUnderstan' when mortgage insurance apply fi investors, how jumbo loan thresholds an' pricin' work, an' wha' additional overlays lenders impose pon rental loans dat affect leverage, reserves, an' documentation needs.
When investors face mortgage insurance costsJumbo loan size limits and pricing effectsCommon investor overlays and reserve rulesDocumentation, DTI, and property limitsLesson 2Tax considerations that affect financing assumptions (mortgage interest deductibility timing)Review key tax rules dat influence financing assumptions, includin' mortgage interest deductibility, points, amortize cos', an' timin' differences, so yuh projections better match after tax cash flow an' returns.
Mortgage interest deductibility basicsTreatment of points and loan closing costsEscrows, prepaid items, and timing issuesCoordinating tax and financing strategiesLesson 3Checklist of assumptions to state clearly in the case responseDis section provide a structure checklist a assumptions yuh mus' state in any rental investment case, coverin' purchase, financing, income, expenses, reserves, an' exit so reviewers can understan', challenge, an' trust yuh projections.
Purchase price, rehab budget, and timingFinancing terms, points, and closing structureRent, vacancy, and lease-up timing assumptionsOperating expenses, reserves, and capex policyLesson 4Loan term choices (15 vs 20 vs 30 years) and amortization effects on cash flow and equityCompare 15, 20, an' 30 year loan terms, see how amortization schedules shape cash flow an' equity growth, an' learn fi choose terms dat balance monthly affordability, risk tolerance, an' long term wealth goals.
How amortization works over a loan’s lifePayment differences by loan term lengthEquity build versus monthly cash flow tradeoffsRefinance and prepayment strategy by termLesson 5Estimating closing costs: lender fees, title, appraisal, recording, prepaid items — percentage rules of thumbDis section show how fi estimate closing cos' fi rental loans, includin' lender charges, title, escrow, appraisal, recording, an' prepaid items, an' how fi use percentage rules a thumb while still checkin' local quotes.
Lender origination, points, and junk feesTitle, escrow, attorney, and recording costsAppraisal, inspections, and survey expensesPrepaid interest, taxes, and insurance escrowsLesson 6Typical mortgage products for buy-to-let investors and realistic interest rate rangesUnderstan' di main mortgage products available fi buy-to-let investors, how fix an' adjustable rates price, realis' rate ranges by risk profile, an' how points, fees, an' credit scores influence di true cos' a borrowin'.
Conventional agency loans for investorsPortfolio and DSCR rental loan optionsFixed versus ARM structures and risksRate ranges by credit score and leverageLesson 7Setting down payment percentages by property type (SFR, 2–4 units, condo) and implications for loan qualificationExplore typical down payment requirements by property type an' occupancy, how loan-to-value limits differ fi SFRs, small multifamily, an' condos, an' how higher equity affect qualification, pricin', an' long term risk.
Investor LTV limits for SFR and 2–4 unitsSpecial rules and risks for condo financingImpact of down payment on rate and pricingEquity, debt ratios, and approval likelihoodLesson 8How to estimate and assume realistic property management fees and tenant placement costsLearn how fi estimate property management fees an' leasin' cos' usin' local benchmarks, contract terms, an' rent levels, an' how fi model lease-up, renewals, an' turnover so yuh pro forma reflect realis' operatin' performance.
Typical management fee structures by marketLeasing fees, renewals, and lease-up costsVacancy, turnover, and lease-up assumptionsNegotiating and reviewing management contractsLesson 9How to model refinance assumptions and the impact of interest rate changes on debt serviceLearn how fi model refinance scenarios, includin' future loan balances, closing cos', an' rate changes, an' evaluate how new terms affect debt service, cash flow, risk, an' overall return pon yuh rental investment.
Projecting future loan balance and equityEstimating future rates and refi costsCash-out versus rate-and-term refisDebt service changes and DSCR impactLesson 10Creating defensible financial assumptions: documenting sources and sensitivity rangesLearn how fi build defensible financial assumptions by tyin' every input to a credible source, documentin' ranges, an' testin' how changes in rent, expenses, an' rates affect cash flow, returns, an' risk in yuh rental case analysis.
Choosing credible data and market sourcesDocumenting key input ranges and rationaleBuilding simple sensitivity tables in ExcelStress testing worst case and break-even points
