Pros: build a portfolio with leverage, rental income, potential appreciation and tax benefits,* DSCR skips income docs. Cons: higher rates and down payments, reserves required, vacancy risk, and more complex qualifying. (*Consult a tax advisor.)
Weighing it
✓ Pros
- Leverage to grow a portfolio faster
- Rental income and potential appreciation
- DSCR qualifies on the property, not your income
- Possible tax advantages*
✗ Cons
- Higher rates than a primary home
- 20–25%+ down and reserves
- Vacancy and maintenance risk
- More complex qualifying
Who it fits
Investment loans fit buyers ready to commit capital and reserves for long-term cash flow and growth. DSCR especially suits self-employed investors and those scaling past conventional limits. They fit poorly if reserves are thin or the deal doesn’t cash flow.
Frequently asked questions
Is it worth financing a rental vs. paying cash?
Leverage can boost returns, but it adds risk and cost. We’ll model both so you decide with numbers.
What if the property sits vacant?
You still owe the payment, which is why reserves matter. Budget for vacancy in your cash-flow analysis.
Are there tax benefits?
Often — depreciation and expense deductions — but confirm specifics with a tax advisor.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.