DSCR or other loan on BRRRR property

[Gina Shumway]

I am only a few short weeks away from completing my first BRRR! I am now on the search for a lender to refinance cash out. Some general info

Located in Chattanooga TN

My LLC owns the house outright (paid cash). Not sure if this is helpful to know.

If you know of a great lender that you have had the pleasure of working with, please send them my way or PM me their contact info. I greatly appreciate your help!

Gina Shumway

[Dominic Pizzi]

Hi Gina! Send me a PM, I would be happy to give you as much info as I can on the cash out refi you are looking to do!

[Jonathan Taylor]

@Gina Shumway you're on your way. Congrats on the first BRRRR. Happy to connect and find the best options for you.

[Matthew Crivelli]

Would be happy to take a look! @Gina Shumway

[Adrienne Green]

@Gina Shumway Congrats!  That's awesome!  Are you looking for a commercial loan or a conventional loan?  On the commercial side, definitely a local bank.  Personally I do mine with FirstBank and TVFCU.  That being said, many I know work with and love their own local bankers.  @Austin Jameson has great commercial loan products, and I believe no seasoning period. A commercial loan will allow you to continue holding the house in an LLC.

If you're going to do the conventional investment loan route, I like the Gabe Whitmer team at FirstBank.  They know investment loans very well.

Also, I would recommend working to get it rented ASAP- if you have a lease, that can be used for the DTI versus the rent schedule on the appraisal. Your lease amount will likely be higher!

[Jack Mawer]

Congrats on wrapping up on the rehab for your BRRRR! Chattanooga is a great place for a rental, would love to learn more about your plans moving forward.

[Austin Jameson]

Quote from @Adrienne Green:

@Gina Shumway Congrats!  That's awesome!  Are you looking for a commercial loan or a conventional loan?  On the commercial side, definitely a local bank.  Personally I do mine with FirstBank and TVFCU.  That being said, many I know work with and love their own local bankers.  @Austin Jameson has great commercial loan products, and I believe no seasoning period. A commercial loan will allow you to continue holding the house in an LLC.

If you're going to do the conventional investment loan route, I like the Gabe Whitmer team at FirstBank.  They know investment loans very well.

Also, I would recommend working to get it rented ASAP- if you have a lease, that can be used for the DTI versus the rent schedule on the appraisal. Your lease amount will likely be higher!

Hey @Gina Shumway, I sent you a PM so please reach out if you have any questions!

[Kenneth Garrett]

@Gina Shumway

I like to use small local banks and credit unions near your rental property. I would definitely get your property rented prior to the refinance. I have used a number of DSCR loans and having the property producing income is a plus. Without a tenant in place then only projected rents are calculated versus actual rents.

Based on how well your rehab went, I was always able to out pace market rent by my actual rent. This increased my DSCR ratio. My goal was always 1.25, but generally I would be in the upper ones and a few times I hit 2.0 or better. This gave me way better terms at the bank.

[Eliott Elias]

Can recommend you to mine. You will have to pull the cash out via DSCR or a commercial loan

[Jayson Cain]

Hi @Gina Shumway, I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.