Hey everyone, Ive been searching for the past few weeks for seller finance deals to ultimately rent to Section 8. I learned a small portion of this method from Tom Cruz, a section 8 Guru. Ive quickly came to reality and realized it is not as easy as he makes it seem. Ive also seen others use the method of a DSCR loan with ($8K-12K) Down. Have any of you guys had success with these sort of loans and could it be better than seller finance/sub to? Im looking to get started with my rental ASAP! All help is appreciated TIA!
Real Estate Agent · Keller, TX · Member since 2017 · 850 posts · 825 votes
2y
@Jessie Cervantes DSCR loans require 25% down payment and are higher interest rate than a conventional 30 year note. DSCR loans also require the expected rents to be at least a dollar over the anticipated PITI. I would suggest you talk to a investor friendly lender in your area to go over all the investor financing options. Also, I recommend that when you post in the future let us know what city and state you are looking to invest in. That way you get direct feedback from fellow investors that work in that area. Hope this helps.
Thank you Joe! For reference Im in the Houston Area Market. looking to tackle other cities and states as well as they have homes for lower amounts such as $80K-130K.
Thank you Joe! For reference Im in the Houston Area Market. looking to tackle other cities and states as well as they have homes for lower amounts such as $80K-130K.
@Jessie Cervantes That is great. I suggest you reach out to my preferred lender, and fellow investor, @Andrew Postell. He can definitely have a conversation with you and explain the different loan options available to us investors. He can also help you with any investment property in Texas. So worth reaching out to him. Good luck in your REI journey. Andrew has helped me personally and many of my clients over the years. He has forgotten more about creative financing than I will ever remember. Great resource to have on your team.
Thank you Joe! For reference Im in the Houston Area Market. looking to tackle other cities and states as well as they have homes for lower amounts such as $80K-130K.
@Jessie Cervantes That is great. I suggest you reach out to my preferred lender, and fellow investor, @Andrew Postell. He can definitely have a conversation with you and explain the different loan options available to us investors. He can also help you with any investment property in Texas. So worth reaching out to him. Good luck in your REI journey. Andrew has helped me personally and many of my clients over the years. He has forgotten more about creative financing than I will ever remember. Great resource to have on your team.