Scaling After 2 Properties?

Question

Hi,

I have two properties and am looking to scale from here:

House 1) Student rental sfh: cost $125k and brings in $1400 monthly rent.

House 2) Quadplex I’m living in while full rehabbing, half way done. Cost $150k, should be worth around $300-350k when it’s done. (Hope to do a cash out refinance)

Since my income is about $75k, how do I scale from here? I see interesting deals pop up here and there but am worried about using up my dti for my cash out refinance.

Zachary Deal · Answer

Hey Nicholas, the typical min down payment is 20% for a DSCR loan. Some lenders will offer 15% but they can be difficult to qualify for in my experience.

Nicholas L. · Answer

@John Friendas

BRRRR then refinance into DSCR loans

easier said than done - BRRRR is tough right now - but DTI is not an issue with DSCR loans

Ethan Haigler · Answer

You could capital stack

Rob Austin · Answer

DSCR

Andrew Fletcher · Answer

Hello Nicholas,

I'm not the original poster, but I was wondering what your experience was using DSCR Loans? What was the downpayment percentage on these loans? If you have used it multiple times in the past, did you use the same LLC each time?

Thank you!

Scaling After 2 Properties?

Scaling After 2 Properties?

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