All Forum Posts by: Andrew Garcia

@Samuel W., most DSCR programs limit you at a 75% LTV. Therefore, you can take out about $240,000. However, after factoring in the renovation expenses, closing costs, discount point, and pre-payment penalty, it will likely be closer to $160,000 that you get out.

Assuming a 7% rate, your monthly payment would increase by about $1,600.

Which is more important to you $1,600 per month in cash flow or $160,000 to reinvest somewhere else?

I love getting paid for doing refinances as much as the next guy but sometimes they do not make sense.

RSUs cannot be considered as income for conventional financing so it will be tough finding better options than a DSCR.

You could try doing a net rent loan where they underwrite your file as if it were conventional but the rental income is calculated based on the lease agreement or AirBnB payouts for STRs. 

However, you typically need 12 months of rental history to use this product.

The advantage of this is that the rate is about .5% lower than DSCR.

If you want to use this program and avoid the prepayment penalty, waiting a year could be a good option.

Hope this helps! Let me know if I can be of any assistance.

Hi @Samuel W., how much are you putting down on the current loan?

That will really determine whether it is even worth it to refinance year one.

@Bruno Morales, just connected!

Hi @Jason Piccolo, hello from the DMV! 

I can do a fixed-rate second loan on an investment property known as a HELOAN but the HELOC market for investment properties has dried up a bit in recent months.

You can check out Nick's recommendation or feel free to shoot me a message to learn more about a HELOAN.

Hope this helps!

Hi @Josh Kaiser, I am in the DMV so somewhat local. 

Feel free to shoot me a message to see if we would be a good fit.

Hi @Nicholas Vandermolen, I believe some guy that has not watched Interstellar wrote a book on something exactly like this.

He runs a small podcast I think.

Hi @Jerika Demos, you could do a HELOC but you would have to wait 6 months from the purchase date. By then, you can access more equity if you so choose to invest in another property or do something else with it.

You could also borrow against your 401k. Then, in September, take a HELOC or second mortgage out to pay off the 401k debt. Essentially, you end up in the same position, just 4 months sooner.

Hope this helps! Let me know if I can be of any assistance.

Hi @Albert Howard, yes there are a lot of options out there. Depending on your goals and scenarios. Below are the three most popular, going from the lowest rate to highest.

1. Conventional. Strictest underwriting but better terms.

2. Net Rent. The same underwriting as conventional but the income calculation is more investor-friendly.

3. DSCR. The income is calculated based on the rents on the property compared to the monthly mortgage payment.

Hope this helps! Let me know if I can be of any assistance.

Hi @Ian Hutton, it really depends on the bank or credit union. I am a broker and some of the lending partners that we work with will only serve a very small market. Others will take anything they can get their hands on.

I recommend finding 2-3 lenders that can do it and then getting rate quotes from each. Make sure you shop around!

Hi @Brian Thomas, you can generally borrow up to 75% of investment properties through cash-out refinances, HELOCs or second mortgages.

It comes out to be about $625k accessed. If you use that to fix it up, you can borrow against those improvements in 6 months to get more capital to reinvest.

You could do each property individually or do a portfolio loan. There are pros and cons to each.

Let me know if I can be of any assitstance.