Need Quotes for Non-Warrantable Condos in New Braunfels, Texas

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Need Quotes for Non-Warrantable Condos in New Braunfels, Texas

Mitchell Petras
New to Real Estate · Houston, TX · Member since 2019 · 11 posts · 6 votes

Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Mitchell Petras:

Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 


 Personally I would not invest in these. Why? Not sure how long you have been around, but when markets soften, these types of assets get crushed because vacancy rates increase which causes condo fees to increase due to the amount of delinquency on the books. These are like a double whammy and if they are not cash flowing now - they probabyl will never cash flow.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Mitchell Petras:

    Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 


     Personally I would not invest in these. Why? Not sure how long you have been around, but when markets soften, these types of assets get crushed because vacancy rates increase which causes condo fees to increase due to the amount of delinquency on the books. These are like a double whammy and if they are not cash flowing now - they probabyl will never cash flow.

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  • Mitchell Petras
    OP
    New to Real Estate · Houston, TX · Member since 2019 · 11 posts · 6 votes
    2y

    Okay, but hear me out, hypothetically, if I was interested in financing these anyways, do you know a lender?

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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 652 posts · 314 votes
    2y
    Quote from @Mitchell Petras:

    Okay, but hear me out, hypothetically, if I was interested in financing these anyways, do you know a lender?


     Hey Mitchell,

    I might have a group that can help, they are certainly tricky to find but if you have what you need from the condo association we might be able to. 

    Just sent you a DM.

    [email protected]417-427-2612
    1Reply
  • Nick Conley
    Lender · Dallas, TX · Member since 2023 · 71 posts · 19 votes
    2y
    Quote from @Mitchell Petras:

    Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 


     Hi Mitchell,

    I work with a lot of condos and have options for non warrantable that have pretty great rates if you have 25% down payment.


    We will need to figure out why they are non warrantable as that will be an important factor for any lender. Feel free to DM me and we can talk more

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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    Do you know the reason for them being non warrantable by any chance ? Worst case scenario 30% down and 6 months reserves will get it done 

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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    2y
    Quote from @Mitchell Petras:

    Looking to invest in 2 condos in the New Braunfels, Texas area to be used as short term rentals. The property is majority investment properties making it non-warrantable. I’m looking to get quotes and optimized options to make this happen. I’m willing to put down 25%, just looking to make an informed decision on the financing side here. The properties are currently about breaking even based on their first year as rentals, but the management company used seems to be leaving some on the table in my opinion. 

    We can usually get these done on a DSCR loan without an ltv restriction if they are non-warrantable due to the investment occupancy and nothing major related to HOA. We can also utilize short term rents to calculate the DSCR. Happy to take a look if it helps. Like Chris mentioned though, you may want to do a deep dive to make sure it’s a good option. From my experience, condos can be tricky sometimes.
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