All Forum Posts by: AJ Wong

Hello...Assuming an ARM? The rate sounds low..conventional mortgage primary purchases are in the high 6%'s-low 7%'s..The 5 year PPP is a little heavy as usually declining..5%.4%.3%..can also consider 'buying out' of the PPP usually around 1-1.5% of the loan amount upfront.. Typically DSCR is minimum 20-25% down, they will utilize a proportion of the current or proposed rental income to qualify.

I'd have a second look at the income for full documentation qualification as well..there might be some other ways to qualify income..including asset depletion..

I would strongly recommend to connect with @Joseph Chiofalo they are a nationwide investor focused direct lender. Good luck! 

Welcome. It is THE place :) 

HI John what's the property type? And down payment..20 or 25%? Rates ticked down the most in a week for 2024, last week so sounds a hair high..we just priced a DSCR purchase for 5+ units just below that..Check in with @Joseph Chiofalo for a quick quote. He's based in FL but they lend nationally. He's my go to lending contact for 20+ years. Good luck! 

HI Mario, on a primary you might actually be able to get to 90% depending on credit, income, property type and seasoning..rate might be more tolerable than you're thinking..@Joseph Chiofalo just helped a referral with a high LTV cash out refinance. They lend nationwide, definitely worth a check in. Cheers.

HI Tomer, you can definitely secure a fixed second or HELOC on an investment property. Some investors have total properties owned restrictions, although sounds like you're doing something right! I would check in with @Joseph Chiofalo they lend nationwide and focused on investors and they also have STR specific purchase programs that might be able to reduce the actual HELOC amount required. Good luck!

Great post and question. High level $200k for a $36k gross return is a low yield..however I think there are a few variables..with 35% down you should be able to get stronger lending terms, if the seller is workable you could entertain a concession towards a rate buy down for lower obligations, possibility to look at shorter duration (ARM) loans if you only intend to own 3-5 years which could also offer a lower rate. Lastly, COC could be stronger with lower down payment..check in with @Joseph Chiofalo for some investor focused mortgage support. 

You're welcome. Technically 5+ units is commercial so many residential lenders won't offer financing in house.. It can be technical but underwriting is generally based on strength of borrower credit, assets/reserves, income of the property and aforementioned LTV. High W-2 wage earners are generally more lender friendly as it's the 'most' consistent and/or easily documented. It sounds like you won't have any trouble qualifying..

In Oregon there are some tenant laws that can restrict active CAP rates, but those with current market rents (or that can attain them near term) can approach double digit return rates. For example the 13 plex should generate $11-12k in gross market rents but has 50%+ occupancy due to a recent remodel. The 5 plex is slightly overvalued at $8-900/door in gross rents market is $1-1100. Financing and loan terms can be a critical component to supporting cash flow or incentive on multi unit or commercial properties.. A 5 plex vs 13 plex can have considerable financing considerations.. a strategic mortgage partner will be critical to answering some upfront questions to provide a property search framework.

Example in Oregon is a 5Plex asking $550K+/- or $100k/door. $125-135k down. Or 13 Plex asking $975k. Six months reserves should be more than sufficient to qualify and conservative to account for any (eventual) unforeseen circumstances. 

We try to find prospects that also have separate utilities such as electrical and less commonly separate water/gas.

 Yes send me a DM. Cheers.