Lender · Albermarle, NC · Member since 2025 · 237 posts · 90 votes
Curious how other landlords are approaching financing right now. Are you sticking with conventional loans, moving toward DSCR-style structures, or mixing strategies depending on deal size?
What’s been working (or not working) as portfolios grow?
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9mo
I still use the same systems I've been using for years. Purchase and rehab funded through private lending and refinance using a DSCR loan.
The difference now is it takes more effort to find a deal that works in a given market. Numbers are tighter, but I've been mixing MTR and STR. LTR are more difficult to make the numbers work. Saving grace is rental numbers are still healthy.
Now that there is more volume of properties available negotiating with sellers is getting easier to do. Rates are coming down as well, but we all got spoiled with those incredible low rates.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
9mo
I still use the same systems I've been using for years. Purchase and rehab funded through private lending and refinance using a DSCR loan.
The difference now is it takes more effort to find a deal that works in a given market. Numbers are tighter, but I've been mixing MTR and STR. LTR are more difficult to make the numbers work. Saving grace is rental numbers are still healthy.
Now that there is more volume of properties available negotiating with sellers is getting easier to do. Rates are coming down as well, but we all got spoiled with those incredible low rates.
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
9mo
Doing new builds for rental and long term hold with below market FIXED interest rates of 4.25% to 4.75%, and all bought that way this year are positive cashflow. Have other existing fixed rate mortgages at 2.5%, 2.62% and 2.87% but the 4s are fine with me.
What I see is that the people who keep scaling aren't locking themselves into one product. On some deals use DSCR funding to close quickly, then switch to a conventional loan after the property stabilizes. On others, bring in a bridge or private lender if the numbers make sense. The magic ingredient is buying at a steep enough discount so that the financing doesn't break the deal. Once you have that and a good reputation with lenders, the specific loan type is just a tool.