Investor Profile:

FICO – 650

• Property type: Single-family rental
  • Ownership: 1 property
  • Strategy: Passive hold

Property Snapshot

• Value: $520,000
  • Loan balance: $180,000
  • LTV: 35%
  • Equity: $340,000

Rental Performance

• Rent: $2,200
  • Operating expenses: $850
  • NOI: $1,350

Current Loan

• Rate: 6.75%
  • Monthly P&I: $1,168

Cash Flow

• $1,350 – $1,168 = $182/month
  • Coverage ratio: 1.16x

Refinance Analysis

❌ Rent coverage below program minimum
❌ Cash flow too tight to absorb refinance costs
❌ Equity alone does not compensate

Decision

No refinance recommended at this time.

Key Takeaway

This program is designed for strong cash flow, not just high equity. Sometimes the best decision is to wait.