All Forum Posts by: Chelsea Whitt

Hi @Jaycee Greene, the concept of a DSCR is new to me actually, so we haven't discussed it with lenders yet. Would you be able to elaborate on it and what type of loan you would advise for before and after a cash out refi in this situation? Thank you!

Thank you for your replies! The estimated ARV was actually calculated based on similar properties in the direct area with a similar build year, layout, and potential renovations made. Similar properties on the same street appear to be valued anywhere between 350k-380k depending on the number of bedrooms, renovations completed, etc. As for loan options, we were considering using a HELOC on our primary residence to cover the down payment, with the remaining amount being financed through a conventional mortgage loan.

Hello!

My husband and I are in the process of searching for our first investment property and would appreciate some input from more seasoned investors. The deal we're currently analyzing is a BRRRR and is listed at $250k and is located in a great area with great potential for forced appreciation and low vacancy rates. Repairs and renos are estimated to be around ~$30-35k, and the ARV would is estimated at $365k. Estimated rent based on market research in the area would likely average at $2250/month.

We currently own our primary residential home and would prefer to leverage its equity to fund most (if not all) of the down payment through either a HELOC or Equity Loan. The remainder would be financed through a conventional loan.

Due to the high interest rates on both conventional mortgages and HELOCs, we're finding that the monthly cashflow takes a big hit both before and after a cash out refinance, almost breaking even. With good potential for forced appreciation and low vacancy, how worried should we be about this?

Would also really appreciate any feedback on the analysis itself! Thank you in advance!