Loan options on 4-plex in IN

[Richard Goore]

I just purchased a 4-plex in IN with cash. I would like to put a loan on the property to pull out as much of my cash as possible to use for other property investments. Wife and I have high credit score and we are high income earners (her W-2 & 1099 for me). Was looking at DSCR so it was easier than compiling so much info on our personal finances. I believe we would hit the >1% ratio for this. I am thinking I will keep this long term as I focus on improving rents, so a holding period is not a big deal as long as it is not too long. Longert term goal is to purchase larger apartment complexes.

Am I missing out on other options?  TIA

[Alex Bekeza]

@Richard Goore Well said, even if you have great DTI and could save a few bps w/ Fannie/Freddie, DSCR loans can certainly be the easy button. Aside from the easier qualifications you can also get higher LTV on a 4plex for "cash out" and vest title in a LLC if desired. DSCR loans also won't report to your credit as a tradeline.

On the more aggressive side of things you should be able to pull up to 80% of the recent purchase price right away, or, after 90 days of ownership you could get up to 75% of the new appraised value. (most banks want 6 or 12 months but some DSCR lenders can do 90 days)