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All Forum Posts by: Cindy Tansin

Cindy Tansin has started 1 posts and replied 7 times.

Post: Cash out refi tax question

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7

Your mortgage interest on the given property is deductible.  If you took the cash out of your primary, it wouldn't be, but any mortgage interest on an investment property is deductible.  

Post: Apply for HELOC now for future investing?

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7

I just took out a HELOC to fund an ADU that I want to build. I may not break ground for some time, but that's fine. There's no payment on unused LOCs. As long as you have a game plan for paying off the HELOC balance within 10 years, this is a sound strategy. The danger comes in making IO payments and then getting hit with payment shock when it converts to a fully amortized loan. Always treat HELOCs as short term/temporary leverage tools and you'll do fine.

Post: DSCR Loan for a first time home owner

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7
Quote from @Anthony Jones:

Hello everyone,

Currently as a recent graduate I do not have the W2 history to use conventional loans so my main focus has been DSCR loans.

I have the bank statements and reserves part of the loan process secured. My question relates to how realistic this loan would be for me. I've heard that for a first time home owner, the lender may: wait until you've occupied the home for 6-12 months before giving you the loan, increase the interest rate dramatically which may render this loan useless entirely if it means I wont cash flow on my property, and also increase my down payment therefore decreasing my LTV, which would also render this loan useless for me if I cant refinance to pay off my original lender.

First, I guess I'm wonder if the above statements are accurate and if so, what that means in terms of if I should pursue a DSCR loan?

If these things did happen to work out, could I take out a DSCR for the purchase, then another DSCR for the refinance and use it to pay off the original purchase DSCR?


Thank you in advance!

Anthony


There are no set rules with non-QM loans like these. The lenders I work with won't do a DSCR loan for a first time homebuyer. There is a program that does not require income docs for owner occupied properties. They are quite easy to qualify for, but they require 25% down. Please reach out if you'd like to explore further.

Post: I want to build a detached ADU on my primary residence.

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7
Quote from @Paul Dashevsky:

@Cindy Tansin A great resource for this is Maxable. Also, I wrote a blog about the pros & cons of building an ADU using a kit (pre-fab) versus using traditional construction. Please DM me and I can send you the link. FYI...most kits that are built onsite will usually still need someone (a local contractor) to build a foundation, run utilities (water, sewer, electricity, gas) to the ADU, and build out any other necessary site-work: landscaping, patio/driveway, fencing, etc. Dont forget to budget for this when you're considering an ADU 'kit'.


Thank you for the response Paul.  As soon as I figure out how to DM, I will request the blog

Post: I want to build a detached ADU on my primary residence.

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7

Any recommendations?  Any experience with the kits that are built onsite?

You need to work with a lender who has options - ie a mortgage broker.  Since you're buying investment property, you will be able to include income from the property in your debt calculation.  If you don't have enough income to get a conventional loan, there are many different Non-QM (creative) loans that could potentially work for you.  Best to let the professional (who has options) have a look at your specific scenario and paperwork and tell you what you can do.  

Post: Applying for HELOC and mortgage

Cindy TansinPosted
  • Lender
  • Los Angeles
  • Posts 7
  • Votes 7

I concur with Lorenzo. Also noteworthy is the loan can be refinanced as a Rate/Term (vs. Cash Out) if there is no balance on the HELOC.