All Forum Posts by: Brittany Minocchi

 Can't say for sure as I'm not familiar with Xenia - I've worked with multiple people that ended up buying in Dayton and it seems to be a similar market to some areas of Canton, which is where I personally invest. 

 No problem, I'm here if ya need me! Feel free to reach out any time :) 

Based on a 760+ FICO and 3 year PPP, mid 7s on a 30 or 40 year I/O product, low 7s on non-I/O. Should be similar for a purchase or a cash out refi.

On a 2 year, assuming you aren't paying points for that rate, yes. If that's including a buydown, then no. Bumping it to a 3-year could potentially save you ~0.25% or so. 

3.5% down with FHA on up to 4 units, sticking with a duplex will be your best bet to avoid the self-sufficiency test that a 3-4 unit will be subject to. If you want to go with conventional financing, you're looking at 5% down. Feel free to connect!

Dayton for cash flow, Columbus for appreciation. @Remington Lyman is a good person to speak to about Columbus

Yes, very common. The length varies by lender/state, some states (like OH and PA) have rules around prepayment penalties. If you're required (or choose) to buy it out, your rate and/or costs will be higher as a result. Longer penalty = lower rate, shorter penalty = higher rate (usually - not that long ago I had a loan where a 2 year PPP was cheaper than a 3 year) 

It's typical for fees to be in the $5,000-$6,000 range for a loan of that size, and there aren't many lenders out there that will do DSCR loans under $100k. You can ask for seller concessions, the maximum contributions vary by lender but 2% is common. Keep in mind that the property still has to appraise for whatever you are offering. You may also be able to take a higher interest rate in exchange for lower closing costs, not sure what sort of rate you're currently being offered. There are different ways to structure a loan depending on what works best for the borrower's situation. I'm in OH and work with investors on these types of deals often - happy to assist if you'd like to connect.

HELOCs can be a good way to get started, but don't forget to include that payment in your calculations. As far as down payment, investment properties typically require a minimum of 20-25% depending on property type, FICO, level of experience, occupancy %, etc. If you're interested in multifamily, 1-4 units is more straightforward than 5+ units since that puts you into the commercial space. DSCR loans are a great option for anyone that doesn't fit the conventional "box" - DTI isn't a factor, no employment info needed, no W2s, paystubs, tax returns, 1099s, etc. needed, you can close in an LLC if you want to and many lenders don't report to personal credit, so those loans won't affect your credit score/DTI for any conventional financing you might pursue in the future. Hard money is sort of a last resort, that's typically meant to be a short-term solution and will carry a higher rate and/or fees compared to most other options.

If you're looking at rehabs, you can do a fix and flip/bridge loan, rehab the property, get it rented out and then refinance into a DSCR for a long-term hold.

Hope that helps, feel free to connect with any other questions! 

@Casey Adams @Clint Jusino there are lenders that will go up to 80% LTV on a cash out depending on state, FICO, level of experience, etc and some have NO required seasoning if you have done rehab to justify the increase in value. Tennessee is one that allows 80% if you otherwise qualify. Rates for the shorter seasoning period products and/or higher LTV are usually a bit higher. Otherwise, 3-6 months seasoning is pretty standard. Conventional financing now requires 12 months (it used to be 6), and to refi before that you're looking at delayed financing, which is why your LTV is being based on purchase price instead of appraised value.

Usually the lowest of the lease or market rents are used to qualify, doesn't necessarily have to be rented currently to get it done unless it's a multi-unit....but it does have to be rent-ready.