new to rental business/ DSCR

Member since 2024 · 32 posts · 5 votes

I recently acquired 2 rental properties. I need help in getting DSCR loans on them. I'm located in Upstate South Carolina. I'm trying to get them insured but don't know the type of policy to get.

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Owen RosenBusiness Member

Professional · Clinton Township, MI · Member since 2015 · 682 posts · 259 votes

Quote from @Tekoa Glover:

Thanks. What does the DP3 mean

It's a type of "Dwelling Policy." I wouldn't worry too much about this terminology though as different companies have different names for similar things. Insurance jargon is annoying and many terms are synonymous or just plain confusing. Work with a knowledgeable independent agent.

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Terra Padgett
Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
2y
You'll need a DP3 policy or a Dwelling Fire policy. Call a local insurance broker and tell them you need insurance for a rental property you own and they will be able to get you quotes for what you need. You should still always require the tenant to have renters insurance with liability coverage at a minimum.
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Tekoa Glover
OP
Member since 2024 · 32 posts · 5 votes
2y
Thanks. What does the DP3 mean
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 682 posts · 259 votes
2y
Quote from @Tekoa Glover:

Thanks. What does the DP3 mean

It's a type of "Dwelling Policy." I wouldn't worry too much about this terminology though as different companies have different names for similar things. Insurance jargon is annoying and many terms are synonymous or just plain confusing. Work with a knowledgeable independent agent.
Royal Oath Insurance Group4.9203 Reviews
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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
2y
You mentioned that you recently acquired them - are you looking to refinance into DSCR loans then? Rate term or cash out? Are they in your name or an LLC? Long term or short term rentals? That will have some bearing on what type of policy you put in place.
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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Terra Padgett
Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
2y
Quote from @Owen Rosen:

Quote from @Tekoa Glover:

Thanks. What does the DP3 mean

It's a type of "Dwelling Policy." I wouldn't worry too much about this terminology though as different companies have different names for similar things. Insurance jargon is annoying and many terms are synonymous or just plain confusing. Work with a knowledgeable independent agent.
What Owen said ⬆️
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Tekoa Glover
OP
Member since 2024 · 32 posts · 5 votes
2y
Quote from @Brittany Minocchi:

You mentioned that you recently acquired them - are you looking to refinance into DSCR loans then? Rate term or cash out? Are they in your name or an LLC? Long term or short term rentals? That will have some bearing on what type of policy you put in place.

Thanks for the reply. I am looking to refinance into a DSCR because I want to expand. I don't have a mortgage on them. They are in a LLC. I would like to do long term rentals with them.
Any help would be great. I am not afraid to admit that I am a novice,
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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
2y
Quote from @Tekoa Glover:

Quote from @Brittany Minocchi:

You mentioned that you recently acquired them - are you looking to refinance into DSCR loans then? Rate term or cash out? Are they in your name or an LLC? Long term or short term rentals? That will have some bearing on what type of policy you put in place.

Thanks for the reply. I am looking to refinance into a DSCR because I want to expand. I don't have a mortgage on them. They are in a LLC. I would like to do long term rentals with them.
Any help would be great. I am not afraid to admit that I am a novice,
No worries! You want to pull your cash out of the property then I’m assuming? Did you rehab the properties at all? If not, you may run into issues with title seasoning. Happy to discuss more in depth if you’d like!
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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Tekoa Glover
OP
Member since 2024 · 32 posts · 5 votes
2y
How long does the title have to season? I have had it since February. I was told by another lender that 6 months is enough. Is it?
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River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hi Tekoa -
Congrats on acquiring your rental properties! For DSCR loans, it sounds like you're on the right track. Very familiar with the NC/SC markets and would love to connect with you!

As for insurance, you might want to look into landlord or rental dwelling policies—they tend to cover the specifics for rental properties. Make sure it includes liability coverage and protection for loss of rental income, just in case.

Sending you a dm to connect further!
[email protected]
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Tekoa Glover
OP
Member since 2024 · 32 posts · 5 votes
2y
Quote from @River Sava:

Hi Tekoa -
Congrats on acquiring your rental properties! For DSCR loans, it sounds like you're on the right track. Very familiar with the NC/SC markets and would love to connect with you!

As for insurance, you might want to look into landlord or rental dwelling policies—they tend to cover the specifics for rental properties. Make sure it includes liability coverage and protection for loss of rental income, just in case.

Sending you a dm to connect further!
Thanks so much!
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Tekoa Glover
OP
Member since 2024 · 32 posts · 5 votes
2y
Quote from @Brittany Minocchi:

Quote from @Tekoa Glover:

Quote from @Brittany Minocchi:

You mentioned that you recently acquired them - are you looking to refinance into DSCR loans then? Rate term or cash out? Are they in your name or an LLC? Long term or short term rentals? That will have some bearing on what type of policy you put in place.

Thanks for the reply. I am looking to refinance into a DSCR because I want to expand. I don't have a mortgage on them. They are in a LLC. I would like to do long term rentals with them.
Any help would be great. I am not afraid to admit that I am a novice,
No worries! You want to pull your cash out of the property then I’m assuming? Did you rehab the properties at all? If not, you may run into issues with title seasoning. Happy to discuss more in depth if you’d like!

Yes. No I did not rehab them. I would love to chat more.
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Brittany MinocchiBusiness Member
Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
2y
Quote from @Tekoa Glover:

Quote from @Brittany Minocchi:

Quote from @Tekoa Glover:

Quote from @Brittany Minocchi:

You mentioned that you recently acquired them - are you looking to refinance into DSCR loans then? Rate term or cash out? Are they in your name or an LLC? Long term or short term rentals? That will have some bearing on what type of policy you put in place.

Thanks for the reply. I am looking to refinance into a DSCR because I want to expand. I don't have a mortgage on them. They are in a LLC. I would like to do long term rentals with them.
Any help would be great. I am not afraid to admit that I am a novice,
No worries! You want to pull your cash out of the property then I’m assuming? Did you rehab the properties at all? If not, you may run into issues with title seasoning. Happy to discuss more in depth if you’d like!

Yes. No I did not rehab them. I would love to chat more.

You’re welcome to send me a message. If you haven’t rehabbed the properties, you’ll be limited to pulling cash based on your initial investment. This may not be a problem for you, but many folks want to pull based on the APPRAISED value so I like to mention the title seasoning. For that, you typically have to wait 6 months. If you’re okay pulling a percentage of what you paid, then you don’t have to wait that 6 month period. :)
[email protected]330-354-6590
Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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