Where the Money Comes From: House Hacking, DSCR Loans, and the BRRRR Strategy Explained

Send us Fan MailThe number one thing that keeps people out of real estate is not deal flow. It is not knowing where the money comes from, and assuming they need a pile of cash they do not have.Aaron Kramer has been a mortgage broker since 2018 and works with investors across northeast Wisconsin at Executive Mortgage. He breaks down house hacking from the ground up, including the VA loan that lets veterans buy a duplex with zero down, the FHA option at 3.5 percent down, and why lenders care so much about whether you have ever held a mortgage before. He also walks through DSCR loans, the investment product that qualifies you on the property's rent instead of your personal income, with no pay stubs, no W-2s, and no tax returns required.Then Corey takes the second half solo to break down the BRRRR strategy, which is still the fastest wealth building tool he has found in real estate. Buy, rehab, rent, refinance, repeat.What's covered:Why lenders want to see mortgage payment history before they will do long term financing, and how that affects first time investorsThe VA loan at zero down and the FHA loan at 3.5 percent down on a duplex, plus the appraisal condition issues that make FHA offers weaker in a competitive marketWhere your down payment is allowed to come from, including 401k loans, IRAs, and gifted funds from familyHow many times you can house hack in a row, and what makes a lender approve the third or fourth oneThe three things that make a DSCR loan different: no personal income verification, title in an LLC, and 30 year fixed rate financingHow qualified rent is actually calculated, and why the lender uses the lower of your lease or the appraiser's market rentThe 80 percent of ARV rule that makes a BRRRR work, and why lenders draw the line thereWhat happens when your refinance appraisal comes in low, and why it is usually still a good dealWhy a return on investment with none of your own money in the deal is mathematically infiniteThe bonus depreciation strategy that let one couple keep more money by having a spouse leave their jobWhy a 7 percent rate and a 5.85 percent rate produce almost identical equity after five yearsGet off-market deals every Monday at 6am: WisconsinDiscountProperties.com