Updated about 18 hours ago on . Most recent reply
Buying first duplex
I am using a conventional loan to buy my first duplex. I would like to eventually BRRRR this property and use a DSCR loan so that it's not on my credit report. Should I have used a hard money lender first?
One unit is vacant and the other tenant is moving in October. The property could needs around $6k in repairs. I want to update the kitchens & baths. I have a $43k estimate. Buying for $255k and it appraised at $265k.
Most Popular Reply
I don't see any advantage to replacing a conventional mortgage with a DSCR mortgage unless you have REALLY bad conventional mortgage terms or unless it's now many years after the conventional mortgage was taken out and you just want to refinance with a DSCR. However, if the property increases in value significantly after your rehab, you may want to consider refinancing. If that is the case then, yes, a hard money loan may have been the way to go to when purchasing the property.