How Canadians Are Using DSCR Loans and Partnerships to Invest in U.S. Real Estate

In this episode of the Wisdom, Lifestyle, Money Show, host Scott Dillingham sits down with Araceli, a mechanical engineer turned full-time real estate investor and renovation contractor based in Cleveland, Ohio. Araceli shares her inspiring journey from working 17 years in the Canadian aerospace industry to building a thriving real estate investment and contracting business south of the border. Her story is one that many Canadians can relate to — a good job with a ceiling on time and income, and a life event that forced her to think differently about building wealth.

After going through a divorce and facing the challenge of maintaining expenses on a single income, Araceli purchased her first investment property in Hamilton, Ontario for $180,000, converting it into three units. By 2016, she was living rent-free and generating $400 per month in positive cash flow — a lightbulb moment that changed her financial trajectory forever. However, as Canadian real estate prices surged with properties receiving offers $50,000 to $100,000 over asking, she could no longer find cash-flowing deals in Ontario. That search for affordable, high-yield properties led her to Cleveland, Ohio, where she purchased her first two houses for just $17,000 and $22,000.

Araceli walks listeners through the realities of investing in U.S. real estate as a Canadian, including the critical importance of hiring reliable property managers and contractors, understanding neighbourhood grading systems, and knowing the difference between a good deal and a money pit. She explains how rising construction material costs — which have nearly doubled since the pandemic — make it essential for investors to target properties priced at $100,000 and above for sustainable cash flow and appreciation. Scott reinforces this point, noting that most foreign national mortgage programs require a minimum loan size of $75,000, making a $100,000 purchase price the practical sweet spot.

The conversation also covers key financing options available to Canadian investors in the U.S., including DSCR loans that qualify borrowers based on rental property income rather than personal income, and ITIN mortgages for those with a U.S. tax identification number. Araceli shares how she secured her E-2 treaty investor visa, allowing her to live and work full-time in the United States running her renovation company. She discusses her partnership model, where Canadian investors provide capital while she handles sourcing, renovating, and managing properties — splitting profits and ensuring both parties have a vested interest in the deal.

Scott also highlights the growing trend of Canadians investing in U.S. real estate, with data showing Canadian buyers are the second-largest group of international purchasers of U.S. property. The episode offers actionable advice on understanding after repair value (ARV), choosing the right neighbourhoods using grading systems, and why buying adjacent to higher-graded areas can maximize property values. Whether you are a first-time investor exploring cross-border opportunities or an experienced investor looking for a reliable contractor and partner in Cleveland, this episode is packed with practical insights to help you take the next step.