Can I use a DSCR loan to buy rentals in Texas, Florida, or Colorado if I live in California?

Why do California investors buy out of state?

Many California investors find that homes in Texas, Florida, and Colorado cost less relative to rent, so the DSCR ratio works more easily. Each market has its own trade-offs: property taxes, insurance costs, and landlord rules all differ.

What changes when the property is in another state?

• Property taxes: Texas has no state income tax but higher property tax rates in many areas, which raise the payment
• Insurance: Florida and parts of Texas can have high insurance costs from storms; get quotes before you offer
• Closing: you can usually sign remotely or with a mobile notary, depending on the title company and the state
• Property management: budget for a local manager if you won't be nearby

Do I need to be licensed or live there?

No. You don't need to live in or be licensed in that state. The lender needs to be licensed where the property is, which is why it matters that we're licensed in all four states.

Example (illustrative)

An investor in Orange County buys a $310,000 rental near Dallas. The rent is $2,350; with Texas property taxes, the full payment comes to $2,150, a ratio of 1.09. She closes with 25% down, signs with a mobile notary in Irvine, and hires a local property manager.

Our take

Out-of-state investing works when you underwrite taxes and insurance like a local. I'll help you run the real payment, including those two numbers, before you make an offer from 1,000 miles away.