Look beyond gross rent
Model vacancy, maintenance, taxes, insurance, management and financing. Positive gross rental income does not automatically mean a property produces positive cash flow.
Match the lender to the portfolio
Lenders differ in their treatment of rent, existing mortgages, ownership structures and property types. A complete schedule of properties helps avoid surprises late in the review.
Stress-test the plan
Explore what happens if rent is lower, expenses rise or the mortgage renews at a different rate. Keep a reserve for repairs and periods without a tenant.
A useful starting checklist
- Rental agreements and rent roll
- Mortgage and tax statements for existing properties
- Personal income and down-payment records
- Property operating expenses