Rental Properties...

millionaireinthemaki profile photo

I hope I'm asking this question correctly...Can someone explain what 75% net rent means in terms of the motgage company allowing towards income? I understand the calculation, but thats it...Please excuse me, I'm still in training smile

Comments(1)

  • edmeyer3rd December, 2003

    When lenders evaluate loan application they multiply the rental income by .75 to account for vacancies and other expenses.

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