DSCR Refinance Needed – 2 Properties (IL + TX) | Wyoming LLC | No Time Wasters

[Eduardo Cambil]

Hi everyone,

I’m looking for a DSCR refinance lender for a 2-property portfolio in two different states, and I want to be very clear upfront to avoid wasting anyone’s time (yours or mine).

📍 Portfolio Overview

Property 1 – Decatur, IL

• Type: SFR – 3 bed / 1 bath

• Purchase price: $59,900

• Down payment: $6,000

• Current loan balance: ~$52,000

• Current rent: $1,200/month

• Market value (conservative): $75k–80k

• Strong comps supporting value

Property 2 – Slaton, TX

• Type: SFR – 3 bed / 1 bath

• Purchase price (owner finance): $70,000

• Down payment: 10%

• Current rent: $890 → increasing to $950/month

• Market value (conservative): $90k–100k based on comps

• Section 8 upside planned: ~$1,600/month once lease turns

💰 Combined Numbers

• Current combined rent (near term): $2,150/month

• Post Section 8 (conservative): ~$2,800/month

• Total current debt to pay off: ~$115k

• Target loan size: $120k–135k, depending on appraisal/LTV

• Term: 30-year DSCR

• Borrower: Wyoming LLC

• Pure investment (non-owner occupied)

🎯 What I’m Looking For (Very Important)

Please do NOT contact me if you don’t meet all of the following:

✅ DSCR refinance that can handle MULTI-STATE collateral (IL + TX)
✅ Minimum appraisal per property: $50k (no small-loan issues)
✅ Reasonable fees — NOT $9k–$12k on a small balance loan
✅ Clear LTV guidance (70–75% preferred)
✅ Ability to explain whether projected Section 8 rents can be considered
✅ Experience closing DSCR loans under $150k without padding fees

❌ If your model relies on excessive junk fees
❌ If you can’t lend across two states
❌ If you don't do true DSCR (not consumer or hard money dressed up)

— please skip this post.

⏱️ Goal

• Pay off both seller notes

• Consolidate into one DSCR loan

• Keep the deal clean, cash-flowing, and repeatable

If you’re a lender or broker who actually does these deals, feel free to comment or DM with:

• Max LTV

• Rate range

• Total fees (real number, not “ballpark”)

• Timeline to close

Thanks in advance. Looking to move fast with the right partner.

[Brittany Minocchi]

Quote from @Eduardo Cambil:

Quote from @Brittany Minocchi:

Hi Eduardo - 

Commenting for any future BiggerPockets browsers that come across your post and have similar wants/needs. You're facing a few hurdles here:

1. Most lenders that do portfolio loans have a 3-5 property minimum.

2. Many portfolio lenders also have minimum loan amounts, sometimes as high as $400k. 

3. Your property values are low - most DSCR lenders require a per-property value of $100k+.

4. I don't know of any lenders that will portfolio properties across multiple states. 

Loan fees will be higher on small balance loans for a few reasons: they take just as much work to close, smaller loans are more likely to default, there's a smaller pool of buyers for these loans on the secondary market, and many loan fees are a fixed cost - you're paying the same ~$2k underwriting fee whether it's a $40k loan or a $400k loan. Same with any applicable processing fees, appraisal fees, title fees...they aren't based on loan amount. 

Projected rents can be considered if a property is vacant, but I don't believe Section 8 rates specifically will be considered (to my knowledge). 

Best of luck, finding someone to do that combination of things is going to be TOUGH.

Hi Brittany,

Thanks for taking the time to lay this out — I appreciate the perspective and agree with several of the structural points you mentioned.

That said, I wanted to share what I've actually been finding on the ground after speaking with a large number of DSCR and portfolio lenders over the last few months.

I have, in fact, identified DSCR lenders willing to go down to $50k minimum loan amounts, even across multiple states. However, the common denominator I keep running into is exactly what you alluded to on fees — and frankly, that’s where the model becomes hard to justify.

What I’m consistently seeing is:

• $7k–$9k in total fees for a "standard" small multifamily DSCR purchase
• In some cases, the down payment is almost equivalent to the total closing costs, which economically makes very little sense
• I've spoken with DSCR lenders charging $4,500 just in underwriting for a single-family home
• Rates around 8.5%, jumping to 8.75% simply to roll ~$4k of closing costs into the loan

All of this despite a 763 credit score, clean background, and conservative leverage.

I fully understand the argument around fixed costs, secondary market liquidity, and small-balance risk — but in practice, many of these structures feel disproportionately punitive relative to the actual risk, especially on stabilized or near-stabilized assets. In several cases, it borders on making the transaction economically irrational.

That’s ultimately why I’ve been leaning more heavily into owner financing, creative structures, and short-term bridge solutions where the math is cleaner and incentives are better aligned — even if that means more structuring work upfront.

I appreciate you chiming in and sharing your perspective publicly — it’s helpful context for others navigating the same space. Always open to comparing notes as the market evolves.

Best regards,
Eduardo Cambil

You’re correct, there are lenders that will go down to $50k or even that have no minimum (I’ve done plenty of them myself); $100k is just the standard for the most part. The loan amount itself isn’t entirely the issue….it’s finding a lender that will go that low and meet the other requirements.