DSCR Loans for (2) properties

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DSCR Loans for (2) properties

Bobbie Russell
Member since 2025 · 24 posts · 24 votes

I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish

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Jacob Stone
Lender · Irvine, CA · Member since 2026 · 4 posts · 1 vote
2mo

Hey Bobby, I’d probably have a broker compare this across multiple lender options before assuming one program is the best fit.

Wishing you the best either way.

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  • Tyler MccleanPro Member
    Investor · Nassau County, NY · Member since 2022 · 64 posts · 17 votes
    2mo

    If you have great credit, and Dscr is high with a 5 year prepay rates are Every bit as good as conventional if not better. I'm going to dm you I can price you out if you'd like.

    0Reply
    • Bobbie Russell
      OP
      Member since 2025 · 24 posts · 24 votes
      2mo
      Quote from @Tyler Mcclean:

      If you have great credit, and Dscr is high with a 5 year prepay rates are Every bit as good as conventional if not better. I'm going to dm you I can price you out if you'd like.



      I've owned one since February 2026 and the other since May 2026. We have great credit



      I've owned one since February 2026 and the other since May 2026. We have great credit
      0Reply
    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      2mo
      Quote from @Bobbie Russell:
      Quote from @Tyler Mcclean:

      If you have great credit, and Dscr is high with a 5 year prepay rates are Every bit as good as conventional if not better. I'm going to dm you I can price you out if you'd like.



      I've owned one since February 2026 and the other since May 2026. We have great credit



      I've owned one since February 2026 and the other since May 2026. We have great credit

      Hey Bobbie, if you are looking to maximize cash out, you'd likely be in the high 7s low 8s at 80 LTV and mid 6s low 7s at 75 LTV. All depends on your credit, DSCR, PPP, and experience

      [email protected]818-269-7983
      LuxePrivate Investments LLC 571 Reviews
      WebsiteView Page
      0Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 648 posts · 310 votes
    2mo

    Hey Bobbie,

    Congrats on getting to this point, I always find it funny to condense deals down to numbers whenever you can reflect on all of the long days, tough phone calls, and negotiations that got everything to that point.

    As for your questions, rates are competitive right now and, depending on what your credit score is, should land somewhere in the 6s. A lot of factors play into that (esp. FICO) but should help with crunching numbers.

    The other big question is when you first bought these projects. The "seasoning" of your property will also play a role in what you are able to get.

    All that to say, sounds like a great opportunity to gear up for the next round of REI and portfolio expansion.

    Good luck! Happy to connect and help if you would like

    [email protected]417-427-2612
    0Reply
    • Bill DiFilippis
      Member since 2026 · 12 posts · 6 votes
      2mo

      @AJ Exner if you've done work to the property, seasoning typically won't be an issue.@Bobbie Russell - I'm a deal desk manager for a private money shop - give me a shout with any questions!

      0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2mo
    Quote from @Bobbie Russell:

    I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

    Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

    Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish


    You are likely going to be eligible for Cash-Out Refinances at 75% of ARV on each - rates likely in the 6-7% range on these, how long have you owned each property (this is typically key)

    [email protected]
    Harpoon Capital
    WebsiteView Page
    0Reply
    • Bobbie Russell
      OP
      Member since 2025 · 24 posts · 24 votes
      2mo
      Quote from @Robin Simon:
      Quote from @Bobbie Russell:

      I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

      Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

      Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish


      You are likely going to be eligible for Cash-Out Refinances at 75% of ARV on each - rates likely in the 6-7% range on these, how long have you owned each property (this is typically key)


       I've owned one since February 2026 and the other since May 2026.  We have great credit

      0Reply
    • Tyler MccleanPro Member
      Investor · Nassau County, NY · Member since 2022 · 64 posts · 17 votes
      1mo
      Quote from @Bobbie Russell:
      Quote from @Robin Simon:
      Quote from @Bobbie Russell:

      I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

      Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

      Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish


      You are likely going to be eligible for Cash-Out Refinances at 75% of ARV on each - rates likely in the 6-7% range on these, how long have you owned each property (this is typically key)


       I've owned one since February 2026 and the other since May 2026.  We have great credit


       Hey Bobby I Inboxed you about a week ago. I can go over your scenario and give you accurate pricing. give me a call. 

      0Reply
  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    2mo

    We would be happy to take a look at both. Thanks! 

    [email protected]413-348-8346
    Freedom Capital Funding, LLC523 Reviews
    WebsiteView Page
    0Reply
  • Brett House
    Member since 2026 · 5 posts · 0 votes
    2mo

    Both are great candidates for DSCR. Rates / terms here will really depend on LTV, credit score, and what pre payment penalty you select.

    How much in proceeds are you looking to pull out of Property 1? Estimated FICO?

    0Reply
  • Christian Wamsley
    Investor · Augusta · Member since 2024 · 28 posts · 23 votes
    2mo

    Bobbie, congratulations on getting both projects to the finish line.

    The others have covered rates and seasoning well, so I'll add one thing that often gets overlooked.

    Don't look at these as two separate loans—look at them as two financing strategies.

    For Property #1, I'd be asking:

    • Is the goal simply to pay off the seller financing, or do you also want to pull equity for the next deal?

    For Property #2, since you purchased it with cash, I'd be looking at how to maximize your cash-out while still maintaining a healthy DSCR and comfortable payment.

    DSCR is a great product because the property is doing most of the qualifying, but each lender has different overlays on seasoning, LTV, reserves, and prepayment penalties. Sometimes a small adjustment to the structure can produce a much better outcome than simply chasing the lowest rate.

    I'd encourage you to compare a few scenarios before committing. A good quote should show you not just the interest rate, but your proceeds, monthly payment, reserves required, and any prepay penalties so you can see the full picture.

    Best of luck with both properties!

    0Reply
  • Aaron Spatz
    Investor · Member since 2021 · 4 posts · 0 votes
    2mo

    There are plenty of options out there. Places like Vizio and many many others have long-established reputations and do good work with investors.

    0Reply
  • Jacob Stone
    Lender · Irvine, CA · Member since 2026 · 4 posts · 1 vote
    2mo

    Hey Bobby, I’d probably have a broker compare this across multiple lender options before assuming one program is the best fit.

    Wishing you the best either way.

    1Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 490 votes
    2mo

    The guarantor's credit score, LTV, prepayment penalty length are some of the factors that will have the biggest impact on the DSCR rate. DSCR rates will also vary between lenders for the same borrower profile. How long between transactions or seasoning if you want to use the new appraised value for the cash out refinance will determine how many lender options you have as different lenders who do DSCR loans have different guidelines on this. It can be helpful to work with an experienced mortgage broker that specializes in DSCR loans as there will be programs that you may not hear about otherwise as not all DSCR lenders market directly to the public. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    0Reply
  • Malik Shalmiyev
    Member since 2026 · 8 posts · 0 votes
    2mo

    Congrats on stacking two BRRRRs across the street from each other — clean setup. Rates have been well covered here (mid-6s to low-8s depending on FICO, LTV, and prepay), so I'll add the two levers that actually decide your outcome, because they're where investors leave money on the table.

    1) Property 2 (the cash buy) is your delayed-financing play. You closed all-cash about 2 months ago, and a lot of DSCR lenders have a "delayed financing" or reduced-seasoning exception that lets you cash out against current appraised value (your ~$400-420k ARV) instead of being capped at what you paid. That's the difference between pulling out real capital and barely recovering cost. Not every lender offers it — ask specifically: do you allow delayed financing / use appraised value before 6-month seasoning?

    2) Your signed leases (effective 8/7) are an asset — use them. On a DSCR loan the qualifying rent comes from either the actual lease or the appraiser's market rent (Form 1007), and lenders typically use the lower of the two. Since your leases are already signed, check whether your rents are at or above market so the 1007 doesn't drag your DSCR down — if they're under market, the appraiser's number may actually help you. Worth knowing which before you lock.

    Two quick ones: since Property 1 is seller-financed, confirm your lender is comfortable paying off a private note in the cash-out (most are — the payoff and lien docs just need to be clean), and model the prepayment penalty. A 5-year prepay usually buys a noticeably better rate, but only take it if you're holding, not flipping again soon.

    You're in a strong spot — great credit and two stabilized properties. Happy to walk through how the two structures compare.

    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    @Bobbie Russell Congrats on these two new BRRRRs! I'm going to send you a cool tool where you can see live pricing for both. 

    [email protected]818-606-8823
    Investor Property Loan5305 Reviews
    WebsiteView Page
    0Reply
  • Alex BekezaBusiness Member
    Lender · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    @Bobbie Russell Congrats on these two new BRRRRs! I'm going to message you a cool tool where you can see live pricing instantly simply by entering the basic variables (value, rent, taxes, insurance, and FICO). 

    [email protected]818-606-8823
    Investor Property Loan5305 Reviews
    WebsiteView Page
    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 121 votes
    2mo
    Quote from @Bobbie Russell:

    I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

    Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

    Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish

    @Bobbie Russell
    Congrats on getting both projects close to the finish line. Since you already have signed leases, you'll be in a much stronger position when shopping DSCR lenders. I'd compare more than just the interest rate—look at prepayment penalties, lender fees, cash-out limits, seasoning requirements, and how each lender treats leased properties. Those can make a big difference depending on your long-term plans.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    0Reply
  • Jesus SuarezBusiness Member
    Lender · TX, FL · Member since 2025 · 131 posts · 51 votes
    2mo

    Congrats on getting these two properties so close to the finish line! Having signed leases lined up for August 7th already is a huge win. For DSCR loans, you can generally expect interest rates to land anywhere from the high 6s to the 8s. Your exact rate will depend on a few variables: your credit score, LTV (loan-to-value), seasoning requirements for the cash deal, and the actual DSCR ratio.I have a background in lending, property management, and real estate, so I can help you structure these deals with the right lenders to maximize your cash-out.

    0Reply
  • Corinna Negron
    Member since 2026 · 129 posts · 21 votes
    2mo
    Quote from @Bobbie Russell:

    I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

    Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

    Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish

    Congratulations on getting both projects close to stabilization.

    From a lending standpoint, having completed renovations and executed leases already puts you in a much stronger position for a DSCR refinance than trying to finance during the rehab phase.

    The exact rate and leverage will depend on factors such as the final appraised value, market rents, the DSCR calculation, and your overall borrower profile. For the second property, the available cash-out will also depend on the lender's seasoning requirements and maximum LTV.

    Feel free to send me a DM with the property addresses, estimated market rents, and your target loan amounts. I’d be happy to review the scenarios and discuss what financing structure may be available once the properties are fully stabilized.


    0Reply
  • Avi Weichman
    Lender · Member since 2026 · 19 posts · 2 votes
    1mo

    Hi Bobbie,

    Rates for DSCR on average are low 6's to mid 7 depending on quite a few factors as a lot of others already mentioned.


    Happy to run some numbers as i don't require a seasoning period.

    -Avi

    0Reply
  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    1mo

    I've brokered nearly 500 DSCR loans. Let me know if you want a quote.

    0Reply
  • Jason Frangoulis
    Member since 2024 · 6 posts · 0 votes
    1mo
    Quote from @Bobbie Russell:

    I am in the process of renovating 2 properties across the street from each other. One will be done in 2 weeks and the other in 4 weeks. Interested in DSCR loans and have signed rental contracts for both already, effective 7 August 2026. New to DSCR and curious on rates, and terms typically

    Property 1 - current seller finance with $138k left with ARV of $250-$280 ish

    Property 2 - Cash purchase (looking to pull my cash out) $300k in cash but ARV $400k - $420K ish


    0Reply
  • Jason Frangoulis
    Member since 2024 · 6 posts · 0 votes
    1mo

    This looks like a scenario we may be able to help with. Since you already have signed rental agreements, we can review both properties for DSCR financing and determine whether it makes more sense to finance them separately or structure them together.

    I would need the property state, property type, estimated value, current balance, monthly rent, credit-score range, and how much cash you want to receive at closing.

    Feel free to message me the numbers. I can put together a preliminary comparison of the available terms and explain the prepayment, reserve, and seasoning requirements before you commit to anything.

    0Reply
  • Reginald TrussPro Member
    Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
    1mo

    Congratulations on getting both properties close to completion. It sounds like a great time to start exploring DSCR options. I work with multiple lenders and may be able to help you compare rates, terms, and cash-out options depending on your goals. Feel free to send me a DM if you'd like to discuss your scenario.

    0Reply
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