Multifamily, Brrrr, or Fix and flip
I bought my first home as a primary residence as an easy fixer-upper. I have been house-hacking it the entire time I've owned the property as well. The Property value and loan paydown have resulted in 27k of equity built in. I currently only have about 12k saved up for my next investment property. My question is, should I be searching for a multifamily as I still have access to my FHA loan and could potentially utilize a 203k loan to remodel the property and continue to live at my current residence while it is being remodeled? The only issue I'm running into is my debt-to-income ratio is thrown off due to my current residence and usually disqualifies me even after using 75% of the projected income. Are there different strategies I should be looking at. Or do I simply need to wait and continue to build my nest egg? Any help would be appreciated.
Thanks
Most Popular Reply
Hey Branden,
A different strategy you could look at for financing would be a DSCR loan. These loans are based on the profitability of a property, not the income of a borrower. These types of loans do require you to bring more cash to close as the LTV will be as aggressive as FHA.
There are many resources to learn more about DSCR, please feel free to check out the following link to find out everything you need to know about DSCR loans. DSCR Loans Guide