All Forum Posts by: Burhan Senih

Anybody have any DSCR lender recs?

Looking for guidance, thank you in advance. These are turnkey rentals.

Condo #1: $115,000 equity, bought @ 106k last year. Rent: $1400, HOA: $300, Insurance/Tax: $144, Net Monthly: $956, Net Yearly: $11,472, ROI: $11,472 / $106,000 = 10.8%

Potential Condo #2: $115,000 purchase price, Rent: 1400, HOA: $260, Insurance/Tax: $150

DSCR Cash Out Refi on Condo #1: LTV 75%, $86,000 Loan Amount, 30 yr fixed, 7.5% rate, Monthly Payment: Around $650, Closing Costs: Around 8-10k, Total Cash Left: $76,000

Condo #1 After Refi: Money Left In: $28,750, Monthly Net w/ Payment: $306, ROI: $3600 / $28,750 = 12.5%

Cash In Hand: $76,000

DSCR Loan on Condo #2: $115,000 purchase price, 25% down: $28,750, after fees estimating $35,000 All In, $1400 Rent, $260 HOA, $150 Insurance/Tax, $650 Monthly Payment, Net Monthly: $330, Net Yearly $3960, ROI: $3960 / $35,000 = 11.3%

RESULT: Total Monthly Costs: $2160, Total Monthly Net: $630 ish, Yearly Net: $7,560, Total Cash Invested $65,000, Yearly ROI: 11.6% CASH LEFT OVER: $41,000

Could put the cash into a third condo or put into the S&P 500.

Looking for some guidance on whether or not I should pull the trigger for some context:

19 years old college student studying engineering (heavy courseload)

Living in Chicago, Condos are in Ohio (I have family and friends out there)

I work part time at a high end hibachi restaurant averaging $25-$30 an hour.

My rent + utilities with roommates is $750 with room mates.

The numbers work out, my main concern is whether or not Ill deal with large vacancy within the next 5 years, or a recession, and I have to cover the monthly costs on my own ($2,160) which is a lot and not sure if I would be able to keep that up for a long time if I am not working full time in the industry. I would have the safety net of $40,000+ sitting in an investment account, and Ill try to save as much as possible per month to counter any large vacancies in possible recession. The other option is to get DSCR loans with a LTV of 40-50%, monthly payment will be less but then I wont have much $ left over to put in stocks. I want to invest in stocks and also leverage debt. SO, what does everybody think, based on my age, scenario, the current economy / real estate market, what should I do? My father says I should just leave the condo alone and just try to build up a stock portfolio slowly. I currently have around $5000 in an investment account.

@Matthew Crivelli can I get quotes before I close on a deal? 

Does anybody have any clue what renovation estimates look like? Ive only dealt with turnkey rentals in NE ohio, i have about 9, looking to start leveraging, and look into renovating. So far I have only invested in condos. I am looking at a condo right now 2 bed 1 bath, around 1000 sqft. If I want to get rid of the carpet for vinyl or laminate, paint the walls, and simply do a basic kitchen and bath upgrade what would that run me? I dont want to do anything crazy, just white cabinets a cheap nice counter top etc. Or does anybody know how I can go about finding out?

I have a fully paid off condo that I bought in cash last year because I am studying and I do not have a W-2, heard about DSCR loans but didnt really look into it at the time. Got the condo for $106k, key turn rental, and has been renting for $1400. I now want to do a DSCR cash out refinance so I can use that money to expand my portfolio. Now my question is whats the best way to move forward with this estimated $75k? Obviously some sort of BRRR would be ideal, where I dont need to do an insane full gut rehab, but smaller renos to be able to have the least amount of money left in a property, but im finding that such properties are hard to come by, and dealing with contractors seems like a headache. I could just get a similar condo the one I have currently with a 25% down payment and a DSCR loan, ratio would be 1:1 at minimum, but probably around 1:1.2 . And I could do this for 2 condos easily, but my concern is HOA fee increases and lack of appreciation for condos. Would it make more sense to put this $75k into a sfh even if the cash flow is less? I feel like condos are nice because its less of a headache, easier to find good cash flowing deals, and just overall cheaper. If I want to do a house hack, or any other method anybody have any advice on getting started with these? Additionally, whats the risk in having multiple mortgages? If I am able to just pay my mortgage continuously even through a recession I should be ok right? any advice greatly appreciated.