St. Louis Rental Properties

4 Replies

Hello,

I’m a fairly new investor in the Dallas, TX area. I’ve been house hacking a duplex for just at a year. This has worked well for me and I’m now looking to add more cash flow through more properties.

From telling people what I'm up to, I've come across 4 single families in St. Louis. The owner lives out of state and is motivated to sell the properties. I would be buying the properties with hard money. One concern I have is whether I will be able to refinance the homes into conventional loans. I already have an FHA on th duplex and would be adding 4 more loans. From my understanding, 2 years of landlord experience is generally required to count rental income. My wife and I both work, but I don't know if we would qualify on that income alone. I have started to look into commercial loans, but still need to do more research in that area.

I’m looking to connect with some agents or property managers in the area who may have more insight on the market. Any tips or advice is greatly appreciated!

Thanks!

Carl

@Carl Harris Jr Try connecting with lenders in the St. Louis market and go over the numbers of the deals and your combined household income to see if you would qualify for all 4 conventional loans. You may qualify for only some and could wholesale what you don't qualify for. 

@Carl Harris Jr  The good news is that you can usually acquire between 4 to 10 personal loans before financing becomes more difficult. Each lender has a different requirement on the amount of personal investment loans offered, so you'll want to call around and do your due diligence on the right lender for you.

Most lenders will credit the rented units up to 75% of the gross rent, however you're correct in that they may require a certain seasoning period to include this as revenue to qualify for a traditional loan. 

In regards to the hard money situation, some lenders have programs specifically designed for acquisition of buy and hold property and are willing to extend terms out to 2-3 years with better rates than fix and flip financing (as lenders see this as a longer term commitment and less risk).

Originally posted by @Andy Ramirez :

@Carl Harris Jr Try connecting with lenders in the St. Louis market and go over the numbers of the deals and your combined household income to see if you would qualify for all 4 conventional loans. You may qualify for only some and could wholesale what you don't qualify for. 

 Thanks for your response Andy! Wholesaling or flipping is something I've thought about and may consider if I do not qualify for the loan.

Hi @Carl Harris Jr most conventional loans will require you and your wife to be at a 43% DTI (Debt to Income) ratio. You might also be able to add another co-signer like a family member who would be an additional guarantor on the loan. Depending on the equity available in the properties you could look to wholesale or rehab/flip them as well. I saw your PM and will be happy to help you explore your options.

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