Best way to cash out refinance or DSCR

Chicago, Illinois
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Best way to cash out refinance or DSCR

Mehdi Haider
Rental Property Investor · Chicago, IL · Member since 2023 · 8 posts · 3 votes

I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

1. HELOC on an investment property with 75% LTV

2. DSCR Loan with 75% cash out refi

3. Conventional is not giving me upto 75% LTV due to the DTI

My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
2y
Quote from @Mehdi Haider:

I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

1. HELOC on an investment property with 75% LTV

2. DSCR Loan with 75% cash out refi

3. Conventional is not giving me upto 75% LTV due to the DTI

My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.


 Hey Mehdi, 

How much do you owe on this property? Most DSCR lenders will require a minimum loan amount of $75k. You may go up to 75% LTV

[email protected]818-269-7983
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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Mehdi Haider:

    I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

    1. HELOC on an investment property with 75% LTV

    2. DSCR Loan with 75% cash out refi

    3. Conventional is not giving me upto 75% LTV due to the DTI

    My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

    I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.


     Hey Mehdi, 

    How much do you owe on this property? Most DSCR lenders will require a minimum loan amount of $75k. You may go up to 75% LTV

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    1Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    2y
    Quote from @Mehdi Haider:

    I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

    1. HELOC on an investment property with 75% LTV

    2. DSCR Loan with 75% cash out refi

    3. Conventional is not giving me upto 75% LTV due to the DTI

    My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

    I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.


    You can look into bundling the properties into a blanket portfolio loan to save on fees and closing costs. The Minimum DSCR loan balance for a single asset is $75,000.

    [email protected]860-538-3672
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    0Reply
  • Mehdi Haider
    OP
    Rental Property Investor · Chicago, IL · Member since 2023 · 8 posts · 3 votes
    2y
    Quote from @Devin Peterson:
    Quote from @Mehdi Haider:

    I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

    1. HELOC on an investment property with 75% LTV

    2. DSCR Loan with 75% cash out refi

    3. Conventional is not giving me upto 75% LTV due to the DTI

    My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

    I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.


    You can look into bundling the properties into a blanket portfolio loan to save on fees and closing costs. The Minimum DSCR loan balance for a single asset is $75,000.

    Let get in touch tomorrow, I'll call you - a portfolio loan would be ideal, 25% down is ok, I can do that. Is that off the appraisal value or the purchase price? What are the rates going in general or at least difference between conventional and portfolio percentage wise and requirements for portfolio loans? I need to be able to scale quickly into next year, so I need a lender that can work with me on my goals.

    Thanks,
    Mehdi

    0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2y
    Quote from @Mehdi Haider:

    I have purchased a property on cash using my HELOC and I was wondering if there are options to do the following:

    1. HELOC on an investment property with 75% LTV

    2. DSCR Loan with 75% cash out refi

    3. Conventional is not giving me upto 75% LTV due to the DTI

    My properties are cash flowing really well and are appraised at a good value but still under $100K, except one which is $115K. I need to move fast as some of these properties come from an offmarket seller.

    I need to increase my portfolio of SFH homes. Please get in touch if you are a lender and can help me achieve these goals.


     You are approaching it the right way - lay out all the options side by side and run the numbers/scenarios is the best way to go

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  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Hi Mehdi, 

    It sounds like DSCR would be a great option if you are cash flowing well and want to scale. Happy to chat more about it with you.

    [email protected]
    0Reply
  • Jayson Cain
    Lender · Manhattan Beach, CA · Member since 2017 · 423 posts · 268 votes
    2y

    Hi @Mehdi Haider,
    I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

    I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.

    0Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 695 votes
    2y

    Most DSCR products at the moment have a 6 month seasoning period. Take note of the prepayment penalty % as well. There could be a 3 year prepayment penalty of 3%. Be sure to shop a few lenders to see who can provide the best rate and terms. Good luck!

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    0Reply
  • Savannah Hooker
    Lender · Chicago, IL · Member since 2023 · 25 posts · 13 votes
    2y

    HI Mehdi! I have helped a handful of bigger pockets members with DSCR loans in the last few months. We are a local chicago mortgage banker and have very competitive products to help you with creative financing and also your portfolio of single families as well! Happy to be a resource for you.

    0Reply
  • Olu Efunwoye
    Rental Property Investor · Springdale, MD · Member since 2018 · 65 posts · 24 votes
    2y
    Quote from @Savannah Hooker:

    HI Mehdi! I have helped a handful of bigger pockets members with DSCR loans in the last few months. We are a local chicago mortgage banker and have very competitive products to help you with creative financing and also your portfolio of single families as well! Happy to be a resource for you.

     @Savannah Hooker I almost have a similar scenario. Would you have a better option products available in my scenario? See my original post here: https://www.biggerpockets.com/forums/49/topics/1187335-need-...

    0Reply
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