Lesson 1Mortgage insurance, jumbo loan triggers, and investor loan overlays to be aware ofUnderstand when mortgage insurance applies to investors, how jumbo loan thresholds and pricing work, and what additional overlays lenders impose on rental loans that affect leverage, reserves, and 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 that influence financing assumptions, including mortgage interest deductibility, points, amortised costs, and timing differences, so your projections better match after tax cash flow and 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 responseThis section provides a structured checklist of assumptions you must state in any rental investment case, covering purchase, financing, income, expenses, reserves, and exit so reviewers can understand, challenge, and trust your 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 amortisation effects on cash flow and equityCompare 15, 20, and 30 year loan terms, see how amortisation schedules shape cash flow and equity growth, and learn to choose terms that balance monthly affordability, risk tolerance, and 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 thumbThis section shows how to estimate closing costs for rental loans, including lender charges, title, escrow, appraisal, recording, and prepaid items, and how to use percentage rules of thumb while still checking 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 rangesUnderstand the main mortgage products available to buy-to-let investors, how fixed and adjustable rates are priced, realistic rate ranges by risk profile, and how points, fees, and credit scores influence the true cost of borrowing.
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 and occupancy, how loan-to-value limits differ for SFRs, small multifamily, and condos, and how higher equity affects qualification, pricing, and 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 to estimate property management fees and leasing costs using local benchmarks, contract terms, and rent levels, and how to model lease-up, renewals, and turnover so your pro forma reflects realistic operating 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 to model refinance scenarios, including future loan balances, closing costs, and rate changes, and evaluate how new terms affect debt service, cash flow, risk, and overall return on your 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 to build defensible financial assumptions by tying every input to a credible source, documenting ranges, and testing how changes in rent, expenses, and rates affect cash flow, returns, and risk in your 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
