Review Rental Debt Changes at the Property Level

By Don McClain | Founder & Principal, Medro Advisors. For a non-owner-occupied one- to four-unit rental property, review a proposed debt change against the property’s own rent, operating costs and reserves. Compare the remaining payment schedule, new term, fees and any final payment, rather than using the smaller installment alone. Separate funds required to settle the existing obligation from cash actually available after closing. Ask how any proposed changes affect the property’s capital plan; do not assume financing approval or a particular DSCR requirement. Discuss the non-owner-occupied rental plan at https://americasloansource.com/financing/dscr-rental-property/

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