Buying a rental property isn’t about comparing rates. Look at rents, expenses, reserves, repairs, possible vacancy, and what happens if one unit doesn’t pay.
Read the property like a small business
Rent comes in, expenses go out, surprises show up. The lender wants to know whether the building can hold up without relying on the buyer’s optimism.
A building that looks profitable on paper can get tight fast if taxes rise, a unit sits empty, or a big repair lands right after closing.
Plan down payment and reserve
Down payment, closing costs and reserve after the purchase all weigh a lot. A thin reserve makes the file uncomfortable, especially if the building needs work.
Property documents to request
| Property | Document | Risk checked |
|---|---|---|
| Condo | Syndicate and insurance documents | Fees, reserve and building risk. |
| Plex or rental | Leases and expenses | Income that can be used. |
| Cottage or commercial | Appraisal and property details | Use, access and lender comfort. |
Buy a rental with cautious numbers. Not with the best-case scenario.
Choose a lender that likes rentals
Lenders don’t all read rental properties the same way. Some like small plexes, others want very standard files. Their policy matters as much as their rate.
Where the file usually needs attention
These bars show which items deserve attention first; they are not a credit score or approval promise.
Clean documents reduce back-and-forth.
A realistic condition protects the offer.
Policy fit often matters as much as price.
- ✓Current rents
- ✓Real expenses
- ✓Down payment
- ✓Repairs
- ✓Possible vacancy
- ✓Reserve