Good morning, I am doing a 1031 exchange from 1 STR to 2-3 SFH LTR and looking for lenders for DSCR loan quotes servicing Yorktown and Newport News VA areas. Purchase prices will be 200-350k for each property with LTV's around 60-70%. Excellent credit.
Hey Grant, this is exactly what we handle. We have network access to over 7,000 lenders nationwide, so I can shop your scenario around. Happy to connect and learn more!
I think you'll be getting alot of 'feedback' on this one. Make sure to ask whoever you talk to if they can process them as both a 'multi-pack' (simultaneously, yet separate) or if they are planning on doing it as a portfolio (under one note)
It can make a big difference when it comes to ordering appraisals, underwriting guidelines, and even DSCR requirements where if one becomes a bit of a 'lemon' as you move along, that the others don't get hung up and your 1031 becomes at risk. Plus, it will also affect how you write up the purchase contract(s).
Grant — at 60-70% LTV with excellent credit, you're in the easiest part of the DSCR world. Almost any DSCR lender will take that deal. The stuff that actually matters for you:
1. DSCR qualifies off the property's rent, not your income — no tax returns, no W-2s, no pay stubs. That matters on a 1031 where you're picking up 2-3 at once, because stacking purchases doesn't blow up your personal DTI the way conventional does.
2. Each property gets its own loan — no cross-collateralization — so you can stagger closings around your exchange timeline.
3. Ask any lender how they handle the rent number up front (lease vs. appraiser's market rent) before you pay for appraisals. On fresh purchases with market leases it's usually the lease, but confirm it.
One heads-up on my end: my minimum loan amount is $125k, so on a $200k purchase at 60% LTV ($120k loan) that one's just under my line — at 65-70% LTV it fits. The $300-350k ones fit at any of your LTV targets.
Hey Grant, just sent you a connection request. I work for CCM, we have our own in-house DSCR and other Non-QM products. Hit me up if you still need help.
With excellent credit and 60 to 70 percent LTV, you're in the best DSCR pricing tiers. What will move your quotes most is loan size, the prepayment penalty, and how each property's rent covers its payment. At 200K to 350K prices, your loans will be roughly 120K to 245K. Some DSCR lenders have minimum loan amounts or charge more on smaller loans, so ask about that up front. Give every lender the same scenario: rate, points, prepay structure, and DSCR based on the appraiser's rent schedule, so you can compare quotes directly. For the 1031, line up financing before you identify properties, because the 45 day identification and 180 day close windows go fast. Many DSCR lenders also want you to close in an LLC. A single member LLC is usually treated as the same taxpayer for 1031 purposes, but confirm the vesting with your QI and CPA before the closing docs are drawn. Also ask whether they'll do separate loans or a blanket loan. Separate loans keep each property easier to sell or refinance on its own later. I'm happy to connect and take this for you as well
Grant, you’re right to want the properties financed independently. It gives you more flexibility later if one property needs to be sold, refinanced, or repositioned without affecting the others.
Since this is part of a 1031, I’d also make sure the financing is looked at together with the exchange numbers. Before closing, I’d have your QI and CPA model the sale proceeds, debt being paid off, equity being reinvested, replacement purchase prices, and any new debt or cash you’re contributing. The goal is to avoid creating unexpected taxable boot simply because the replacement financing is structured differently.
I’d also compare lenders on more than rate. Minimum loan amounts, prepayment terms, seasoning requirements, appraisal treatment, reserves, and whether they will handle multiple properties independently can make a meaningful difference when you’re working within a 45 day identification and 180 day exchange timeline. With 2 or 3 properties, I’d rather have each loan stand on its own and make sure the entire exchange works from a tax and financing perspective before locking everything in.
It sounds like you have a lot of options here already, Grant. But we'd be happy to quote this for you as well. It sounds like you'd be a good candidate for our zero-point DSCR loan product. We have considerable experience in the Virginia Beach/Newport News/Portsmouth area with several recent closings - great area with lots of upside potential.
Hi Grant — Jiao Liu, commercial loan broker. Your setup is the clean end of DSCR: 60–70% LTV on $200–350K long-term rentals with strong credit is exactly what DSCR lenders compete on.
The one thing I'd flag is your 1031 clock — DSCR timelines are usually fine, but the underwriting has to start before your identification window closes, not after you've picked the last property.
If you send me the target rent and purchase price on the first property (and where you are in the exchange), I'll run real numbers against a few DSCR programs and give you a straight quote range — rate, prepay structure, and closing timeline — so you can compare it against what you've already got.
Hi Grant, moving from one STR into multiple long-term rentals sounds like a great way to grow your rental portfolio. Financing that fits each property can help you preserve capital for future investments. Are you already under contract on any of the properties, or are you still shopping? We'd be happy to review the deals and see if we can help.
Hi Grant! We may able to help with DSCR financing for your 1031 exchange as you transition from a short-term rental into long-term rental properties in the Yorktown and Newport New areas. Happy to connect, and discuss the details.
Thanks for all the replies and feedback! I have selected a lender to work with. I will keep all of you in mind if I need any additional loans moving forward.
A little late to the conversation, but this is exactly the type of scenario we like to see!
With excellent credit, 60–70% LTVs, and multiple single-family rentals, you should have some solid DSCR financing options available.
At Investor Loan Partners, we have access to an extensive network of wholesale DSCR lenders, allowing us to compare rates, points, fees, and loan structures rather than relying on a single lender's pricing. With 2–3 properties involved, those differences can really add up.
Not sure if you've already lined up financing, but if you're still comparing options, we'd be happy to put our wholesale lending relationships to work for you.
And if you've already found a lender, best of luck with the exchange! Sounds like a great opportunity.
Grant - Thomas with Champions Funding. We're the lender, not a broker.
I can help you never pay an origination fee or undocumented points baked into your rate again. We're the lender. Saves you thousands on every loan you do - times 2-3 properties, that adds up fast.
We qualify off the higher of the 1007 or the new lease, no max differential, no reserves under $1.5M.
On the 1031 - I structure each property as its own loan. No blanket paper tying them together, so one slow deal doesn't put the exchange at risk.
Send me the numbers on the first one and I'll give you a real quote to compare.
@Grant Dodge J3 Creative Consulting works directly with private lending sources on DSCR financing. If you're still comparing quotes, we'd be happy to review the Yorktown and Newport News purchases.
At 60–70% LTV, I'd compare rate, points, prepayment terms and total cash to close for each property. Coordinate the financing with your qualified intermediary so it aligns with your 1031 deadlines and exchange requirements.
Feel free to DM me the purchase prices, projected rents, loan amounts and closing dates for a free consultation.
Ran my 1031 purchases through DSCR to keep the clock simple. My guy charges no origination and nothing on the back, so buying two or three in a row did not stack fees on me. Worth a quote next to the others. DM me if you want his info.