Rental Wash and Cash Flow

Rental wash is a mortgage product that both A and B lenders offer. It lets you leverage your other properties from a cash flow perspective to increase your buying power for the next property. Dan, let's use a bit of an example here. So say you're going to go buy a owner occupied duplex and you already own a rental because the owner occupied is the one that you're getting a mortgage on. You can use the rental wash on your existing property because you're now going to rent that one out. This means that you can take the cash flow from that property and add it to your GDS and TDS ratios or your gross debt service and total debt service ratios.