All Forum Posts by: Christina Galdieri

@Christina Galdieri what states are these proeprties located in?

Hi Christina,

What kind of deal are you looking to get into (rental flip) and would you qualify for a conventional? 

Primary: HELOCs are good for short-term use of cash and if you need the benefits of the revolving credit it may make sense. If it's for something long term, cash out refinance may save you more costs as it has lower rates

Investment: Typically you'd be looking at cash out refinance - conventional or DSCR for long term and bridge loan for short term. HELOCs on investments could be applicable but these programs are not widely available qualification is usually not asset based

You're exactly right, qualifying without using personal income is the main benefit of a DSCR loan. But there are a few other perks too, especially for investors:

Speed & Simplicity: Less paperwork since lenders focus on the property’s income, not tax returns or W-2s.

Scalability: Easier to grow your portfolio since it doesn’t tie up your personal DTI (debt to income ratio).

Flexible Ownership: Many lenders allow you to close in an LLC, which is a big plus for asset protection. 

Rental-Based Approval: The focus is on the property’s cash flow so if it’s rented, or has strong market rent, you have options.

Happy to dig deeper if you’re comparing this route with conventional or just getting a feel for what’s possible.

Hi Christina,

Here's a clear breakdown to help you understand how to access the equity in each property, depending on your goals, especially using it for a down payment on House 4:

House 1: Primary Residence

HELOC (Home Equity Line of Credit):
Pros: Flexible draw, interest only payments during draw period, good for short term needs.
Cons: Variable rates, payments can increase based on how much you draw.
Best for: Keeping your lower first mortgage rate intact and accessing funds as needed.

Cash-Out Refinance:
Pros: Fixed rate, lump sum, can have lower interest rates than investment property loans because it's your primary residence.
Cons: Replaces current mortgage rate (which could be at a lower rate).
Best for: If you want to simplify into one loan.


House 2 and House 3: Investment Property 

DSCR Cash-Out Refinance:
Viable option here that doesn't use your personal income to qualify.
Based on potential rental income (current rent, market rent or appraiser’s rent schedule).
Typically max 70-75% LTV.
Documentation is minimal.

Happy to help if you’d like to walk through potential numbers or talk through how others structure this kind of move. There are a few ways to approach it depending on timelines and funds needed, just let me know if a second set of eyes would be helpful.

What's your current rates? For house 1 cash out refi is often a better option then a HELOC unless your rate is dirt cheap. For house 2 and 3 cash out refi is often the only option. You can look to do a 1031 depending on the numbers. Keep in mind when you refi your numbers will change so make sure you will still cashflow

@Christina Galdieri You can absolutely 1031 exchange into multiple replacement properties. The key is not the number of properties. To defer all tax you must purchase in total at least as much as your net sale.

This is what is known as a diversification exchange, and can be great for the investor who wants to diversify their portfolio. A common strategy I see with diversification exchanges, is that the investor will purchase the first property cash and the second with a mortgage.

This will allow you to mitigate risk on the first property but also allow you to do a cash out refi on the second, so now you have access to tax free cash that you can do with whatever you please.

There are a number of QIs right here on Bigger Pockets. The unique thing about this platform is that you can actually search reviews from BP members and interact with them about their experience with that particular QI. Many times your realtor may have a relationship with a QI. This can be good because your realtor will be using them as a resource to help you plan your 1031. It's really all about putting together your team - realtor,  title company, other adivisors, QI. You want them all to be able to communicate well with you and with each other.