Financing your first rentals
Start with conventional investment loans (best rates), then move to DSCR and portfolio loans as you scale past conventional’s property limits. Plan for 20–25% down and reserves on each property.
Early on, conventional financing offers sharp rates. As your portfolio grows and personal-income qualifying gets harder, DSCR loans — which qualify on the property’s cash flow — let you keep buying.
Scaling smartly
Underwrite conservatively (account for vacancy and maintenance), keep reserves, and sequence your purchases. Our Marina del Rey office serves the South Bay and can structure financing for each stage of growth.
Sequencing your purchases for maximum leverage
Smart investors don’t buy randomly — they sequence. Early on, conventional investment loans offer the sharpest rates, so it often pays to use your conventional slots first (guidelines cap how many financed properties you can hold). As you approach that limit or your tax returns get harder to qualify on, you pivot to DSCR loans, which qualify on the property’s rent rather than your personal income — letting you keep buying without a ceiling. Planning this sequence in advance means each purchase sets up the next, rather than boxing you in.
Reserves, vacancy, and managing risk
The South Bay’s strong rents are attractive, but disciplined underwriting is what keeps a portfolio alive through slow months. Budget conservatively: assume realistic vacancy, ongoing maintenance, and property management even if you self-manage today. Lenders require reserves — typically several months of payments per property — for good reason. A deal that only cash-flows at 100% occupancy is fragile; aim for a debt-service-coverage ratio with real margin so one turnover doesn’t sink the month. We stress-test each purchase against these factors before you commit.
Frequently asked questions
How many rentals can I finance?
Conventional limits the count; DSCR and portfolio loans let you scale well beyond it.
How many rental properties can I finance?
Conventional guidelines cap the number of financed properties; DSCR and portfolio loans have no such ceiling, so investors routinely scale well beyond conventional limits.
What reserves do lenders want for rentals?
Commonly several months of the full payment (PITIA) per property, plus a cushion for vacancy and repairs. Stronger reserves also improve your pricing.
How much down for a South Bay rental?
Typically 20–25%+, with reserves. DSCR qualifies on the property’s cash flow.
Which office serves the South Bay?
Our Marina del Rey office (310-759-4757) serves the South Bay and greater LA.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.