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Texas rental property loans

What is a Rental Property Loan?

A rental property loan fits many different categories. They are also known as buy and hold loans, fix and hold loans, landlord loans, and portfolio loans. This is a loan for a cash flowing rental. The income from rents should exceed the debt service to provide cash flow.

Rental property loans have several benefits including but not limited to:


Immediate equity capture. In most instances, the purchase price, repairs, holding and closing costs total far less than the appraised and perceived value of the property, providing immediate equity.

Capital Growth

Appreciation or capital growth. Throughout history, real estate usually increases in value over the long term, greatly increasing the net worth of those owning real estate.

Cash Flow

Cash flow or rental income. Monthly cash flow is the most tangible and immediate benefit for landlords.


Tax benefits. As a landlord, there are many deductions you can claim which can include some or all of the interest, depreciation, repairs, insurance expenses, home office, vehicle expenses, advertising, company meetings and more.

hard money loan types fix and flip

While there are certainly risks and challenges associated with owning rental property, these four outstanding benefits in concert make it the number one way the average American can build wealth and change their financial future.

Types of Rental Property Loans

Most common rental property loans

Loans for Purchase, Fix & Rent

 This particular long term rental property loan program starts off like a standard fix & flip hard money loan, but after the purchase and repair it transitions to a more conventional mortgage, DSCR loan, or alternative financial product. 

Loans for Fast Purchase & Refinance

Many potential investment properties are not physically distressed, but the owner is in default and the transaction must close quickly. A foreclosure or tax sale, for example, may be imminent. According to many data sources as of December, 2022, most traditional loans take approximately 50 days to close. That time frame will often not be viable and the sellers will usually insist on a cash sale, but may accept a hard money pre-approval from a reputable lender. Hard money has a far more reliable close ability to close on time per the contract.

Loans to Repair Your Distressed Property

Many investors who own a property choose to use hard money to make larger repairs during a turnover between tenants or if attempting to sell.

This loan is used to purchase and repair a property with the intention of selling it. The expectations for quality of finish and structural repairs can be higher as the property will usually need to pass a full inspection by a licensed inspector.

Catalyst Funding is a trusted real estate investment lender in Texas.

Get Pre-Approved Today for a Texas Rental Property Loan

Catalyst Funding is a trusted real estate investment lender in Texas. We offer a wide variety of loan products that are perfect for real estate investors looking for private or hard money, to long-term conventional, non-conventional or DSCR loans, and even blanket loans!

We can help you fast-track your next real estate property investment. If you think that Catalyst Funding might be a good fit for your investment needs, then call us today. 832.699.6960

Our knowledgeable fully licensed loan officers are standing by. We look forward to answering your questions and helping you accelerate your future in real estate.

Catalyst Funding, LLC partners with Nations Reliable Lending, LLC (NRL Mortgage), which is the company in which we offer our Conventional Loans.

Wade Comeaux is Founder and President of Catalyst Funding and leads the Catalyst Team with NRL Mortgage.

NRL Mortgage is a nationally recognized Mortgage Lender and was built by providing the most important thing a lender can: Reliability.

Being a Fannie Mae Direct lender, NRL Mortgage has a full suite of products and best in class customer service. We understand and appreciate buy and hold investors and have significant expertise navigating the challenges presented by owning multiple properties and unique income documentation situations.

This is an advertisement. All applications are subject to credit approval. Program terms and conditions are subject to change without notice. Some products may not be available in all states. Other restrictions and limitations may apply. This is not a commitment to lend. Nations Reliable Lending, LLC is an Equal Housing Opportunity | www.nrlmortgage.com | NMLS # 181407 – 1220 Augusta Drive, Suite 600, Houston, TX 77057, 713-275-1300 | For a full list of our licenses, please visit www.nmlsconsumeraccess.org.