All Forum Posts by: Alexis Sostre

You will need to move title back to IO. Since you have a high credit score and strong portfolio, I'd first see if you qualify for a conventional refi in your personal name (best rates and terms). If debt-to-income doesn't work, or if you want to scale fast and keep things clean inside the LLC, then go DSCR.

If the property cash flows really well, a DSCR is a great long-term tool (and it won't "clog" your personal DTI). But if this is just about paying off private money and locking in the cheapest long-term debt, conventional wins every time.

I did a quick search on my MLS. Im in California and it showed me 147 Short Sale Properties.

Hi Mike Im available, im doing STR in California happy to answer any questions and how to get financing for STR's If you wanna talk 😎 Welcome to BP!

Scenario A – Including your occupied unit as "lost rent":

• Rental income: ~$8,625/mo

• Expenses (taxes ~1.2%, insurance, maintenance, reserves, mgmt even if self-managing): estimate 35–40% of rents = ~$3K–$3.5K/mo

• Net Operating Income: ~$5,100/mo

• Debt: ~$9,963/mo

• Cash Flow: ≈ –$4,800/mo (negative). 

Scenario B – If you count your “free rent” (living in the 4th unit):

• True rent potential: $11,500/mo

• Expense load: ~$4K/mo

• NOI: ~$7,500/mo

• Debt: ~$9,963/mo

• Cash flow ≈ –$2,500/mo, but you’re saving ~$2,875/mo in market rent (your unit’s value). 

• So, you’re basically “living for free” or close to it. From a pure investment lens, the numbers don’t work for cash flow. From a house-hack / lifestyle arbitrage lens, it can make sense, especially in CA where appreciation can bail you out.

• In CA, especially in good school districts, the bet is long-term appreciation + tax benefits rather than immediate cash flow. Even at 2–3% appreciation annually, on $2.5M that’s $50K–$75K/yr in equity gain, which dwarfs the cash flow deficit. Tax sheltering from depreciation also helps offset some of your high W-2 income.

Ran a quick scenario with info provided. As a flip: Good deal (strong margin if rehab truly $30k). As a rental: Mediocre cash flow unless its all cash or leave a lot in the deal. Even then, returns are ~7% COC, not amazing for the risk profile. If your strategy is forced equity then refinance to recycle capital: this works, but cash flow will be razor-thin or negative with leverage. If your strategy is hold for cash flow: probably a bad deal in this submarket, unless rents rise or you negotiate rehab down.

I helped one of my clients close on an STR on Indio as well and hes performing very well!

@Orae Haus you are correct! I have a STR in Indio just down the street from where Coachella Festival happens! Some of my clients sold there STR's and purchased in Indio. There is no regulations here, you can do STR as many nights you like! I be happy to chat more about it you can hit me up!

With that new 5-year lease in place, a mixed Use DSCR loan could be a great fit since it focuses on rental income and offers more flexible terms than a traditional commercial loan. Im available to run some numbers based on your deal and see If I can get you better terms

I have a program 1% down payment only of purchase price if home price is below $350K Would love to help

Do it now as a primary residence HELOC before you get a tenant. Some lenders will let you apply while it’s still “your residence” on paper, especially if you just moved and your driver’s license / mailing address hasn’t changed yet. Once the HELOC is in place, you can keep it even after renting the property. As a backup, use an interest-only equity loan for the roof now, then refinance into a HELOC later once you’ve built a track record as a landlord.