How to Rent Out Your Investment Property

Obtaining a Mortgage for an Investment Property

If you are investor or thinking about purchasing an investment property, and need a mortgage, there are a few options. Depending on your income, you may qualify for a conventional mortgage for an investment property. This can often require a 15 to 20% down payment, depending on the type of property (i.e. house vs townhome vs condo vs multi-family).

Even if you don't show sufficient income on your documents, such as tax returns, 1099s or W2s, don't worry. There are other mortgage options. One popular option is the DSCR loan. This can allow an investor to purchase an investment property with at least 20% down payment and will not have any income verification. Instead of using the investor's income, the underwriter can utilize the projected rental income that the property will derive. The underwriter wants to ensure that the rental income you will be receiving covers the principal, interest, taxes and insurance. If the property has a HOA, that needs to be factored in as well.

Choosing the Right Strategy for Your Goals

So which option is best? The answer depends largely on your priorities as an investor.

If you’re looking for stability and lower stress, a long-term lease is usually the way to go. You’ll get consistent income and won’t need to worry about constant tenant turnover.

If you’re aiming for maximum cash flow and you don’t mind a more active role, Airbnb can provide higher returns, especially in high-demand areas.

If you’re a more entrepreneurial investor and you’re comfortable with the complexity of shared housing, renting by the room may be your most profitable option.

Ultimately, many investors find that a mix of strategies works best. For example, you might keep one property as a long-term rental to provide steady income, while testing out short-term rentals or room-by-room strategies with another property to boost returns.

Investing in real estate has always been about balancing risk and reward. The way you choose to rent out your property is no different. Long-term leases provide peace of mind, short-term rentals offer flexibility and higher income potential, and room-by-room rentals push the boundaries of profitability.

What matters most is finding the approach that fits your lifestyle, your risk tolerance, and your long-term financial goals. Whether you value predictability, are chasing higher returns, or enjoy experimenting with new housing models, there’s a rental strategy that can align with the way you want to invest.

For some, that might mean signing a steady tenant and checking in once in a while. For others, it might mean turning their property into a boutique Airbnb experience. And for the more adventurous, it could mean renting out rooms one by one and creating a steady stream of cash flow that far exceeds a traditional lease.

The beauty of real estate investing is that you’re not locked into just one way of doing things. As your goals evolve, your rental strategy can evolve too.