All Forum Posts by: Austin Clarence

Jared had some excellent points. Also MTR pricing software might not be effective yet because there are so many variables with properties its hard to truly comp and get an apples to apples comparison (without looking further into the property and the amenities that are covered)

For example the pricing software will not know exactly which utilities are covered, how nice the furniture is, term of lease which can impact the rate, other amenities that is not uniform amongst MTR inventory.

I recommend manually finding comps on Zillow. That is what I do for my property when finding comps. I go back and forth with STR vs MTR depending on the season.

Hi Luz, @Mason Weiss is an awesome agent here in the valley. I've worked with him on several occasions, he works primarily with investors. 

Hi Curtis, even if the house is not rented there are DSCR options you can to that would go off an appraiser's fair market rent analysis. Or there are HELOC options you can look at also. I am a local loan officer that works for a mortgage brokerage in Chandler also, let me know if you have any other questions.

This pricing seems really, really high. Likely a retail mortgage lender with extremely high margins. I would reach out to a broker, or use the find a lender feature if you do not have one. 

If you google the company and do not see any reviews that usually is not the best sign. But I would not, not use them just because people responding to this post have not heard of this specific lender. 

Hi Shahrouz, there are a lot of options for DSCR cash out with you owning the property under 12 months. I am a local broker here in Phoenix. I have 60+ lenders that specialize in DSCR loans. I would love to connect

The pricing you mentioned sounds about right. You might be able to shave off about 1 point or so. But nothing that is going to impact the cash flow on your deal. If you are going to take the deal I would try to find options that do not have a prepayment penalty or maybe up to 1 year. You should be able to find that for your deal with similar pricing if you shop around. This way you can refinance when rates drop within the next year or 2. 

Ok I just sent you a contact via private message. He specializes in DSCR as a broker. I am not licensed but I am happy to review any offers you get to make sure you are getting a fair offer.

I highly recommend reaching out to a mortgage broker, licensed for FL. DSCR is a specialty loan and you can see massive spreads in pricing (Much more than a traditional conventional loan). IF you go straight to one or 2 lenders you are rolling the dice. (I am not licensed for FL, but you could try the Find a Lender option on BP)

Hi Farooq, if its a primary residence you can actually put as low as 5% down. However, the max loan size for Conventional for a 3 unit is set at $1,186,350. So the minimum down would be around 8% at this price point.

If you are going to rent out all 3 units then you would need 25% Down. (See graphic below confirming this rule for all conventional loan lenders) 

Are you asking about creating 3 STRS total, not sure I understand your question. I own and operate a STR in this area, please reach out if you have any more questions.