Is your income holding you back from buying rental properties?

Ran into this exact issue a couple months back when I was looking at picking up another rental. My debt-to-income ratio wasn't terrible, but the lender was suddenly way more cautious than they'd been before. Had to jump through hoops proving my rental income was stable enough to offset existing mortgages. Honestly, I get why they're tightening things up - probably healthier for the market overall - but it does feel like it's gonna squeeze out newer investors or those already stretched thin... Wonder if this'll slow down competition a bit or just make cash buyers even stronger?

"Wonder if this'll slow down competition a bit or just make cash buyers even stronger?"

Yeah, good point. I've noticed lenders getting stricter too, especially around verifying rental income stability. Makes sense from their perspective, but it does feel like it's tipping the scales even more toward cash buyers. Curious if anyone's seen creative financing strategies lately - like seller financing or partnerships - that might help offset this shift for those of us who aren't sitting on huge cash reserves?

I've seen seller financing pop up a bit more lately, but honestly, it's still pretty rare. Most sellers just want their cash upfront. Maybe partnering up could work, but then you're splitting profits... trade-offs, right?

I've definitely noticed lenders tightening up lately. Last month, I went through the whole pre-approval process again, and it was way more detailed than a couple years ago. They dug deep into my student loans and even questioned some small monthly subscriptions I had forgotten about. Felt like they were really nitpicking every dollar spent.

Seller financing sounds good on paper, but yeah, it's not something I've personally come across much either. A friend of mine did partner up recently to buy a duplex, and while they're splitting profits, they're also splitting headaches - maintenance costs, tenant issues, etc. Seems like a decent trade-off if you're cautious about who you partner with.

Personally, I'm holding off for now. With interest rates climbing and lenders getting pickier, I'm just trying to build up a bigger cash cushion first. Maybe things will loosen up again eventually...or maybe I'll just have to get used to jumping through more hoops.

Yeah, lenders are definitely getting pickier lately. I've seen clients with solid incomes and decent credit still get grilled over minor expenses. Makes me wonder if this is just a temporary tightening or the new normal. Curious if anyone's had better luck with smaller local banks or credit unions lately...maybe they're a bit more flexible than the big guys?

"Curious if anyone's had better luck with smaller local banks or credit unions lately...maybe they're a bit more flexible than the big guys?"

Definitely agree with this. From my experience, smaller local banks and credit unions tend to look at your overall financial picture rather than just ticking boxes. When I refinanced recently, the big banks were nitpicking every little expense, but my local credit union was way more understanding about minor stuff like occasional dining out or streaming subscriptions. Might be worth checking them out if you're hitting walls elsewhere.

"smaller local banks and credit unions tend to look at your overall financial picture rather than just ticking boxes."

Yeah, that's been my experience too. When we refinanced last year, our local credit union actually took the time to understand some irregular freelance income - big banks just saw it as a red flag. Definitely felt less stressful going local.

I get the appeal of local banks and credit unions, but honestly, sometimes the smaller guys can be a bit too cautious for my taste. Had one local credit union practically interrogate me over a few Airbnb bookings - felt like I was explaining Netflix to my grandma. Ironically, a bigger bank ended up being more chill about it. Guess it depends on who you get behind the desk that day...