All Forum Posts by: Colbi Ight

You seem to hit the nail on the head. Thanks for the response I found a little better deal with another lender. Thanks 

It was a DSCR loan.

I recently had an independant mortgage broker send me a fee sheet on a house I was looking at refinacing. The home is valued at $155K and I was going to pull $116k out. I have excellent credit and ZERO debt. My bank statements showed over $200k a year running thru my accounts so I felt as if I was a solid candidate for refinancing my rental property.  I thought these were very high BUT I am here to ask the pros for help. I have owned the property over 2 years and have a good tenant paying $1,350 a month for the last 4 months.

Terms

DFW all day

Those are the total costs/fees that i will be charged for the loan. Appraisal, loan origination fee of $2500, escrow fee,title insurance,and other small fees.   I have owned the properties for over a year and a half. They have both been rentedto new tenants for over 3 months each with great tenants.  price points are $155K and $125k. Conventional 30 year fixed rate loans.

I am in a similar situation and I am waiting to hear what responses you get. 

I recently got a quote for a rental home refinance that I own free and clear. It brings in $1350 a month appraisal at 155k to 165k. The 2 rate options were 6.9% plus $5,470 in fees 30 day close 75% appraised value and the other was 8% interest,  $5,400 fees, 60% Appraisal, 2 week close plus some additional income verification. I have an 800+ credit score NO debt at all and over $100k in the bank. I thought these fees were high but some investors have said its  not bad.

Finding pieces of land seems to be the hardest part of this project. I have also been getting really high interest rates from lenders. Most HM lenders are wanting 11% on a 6-8 month build loan even with zero debt, a good credit score and 20% down. 

I am in the process of buying land outside of a major Texas city. I plan on building multiple 6 plexes on the property but I am running into a few problems. First, after doing some research I am noticing a that the idea of building under $85 a sqft is very possible. I have been doing my research and after talking to other builders in the area that have told me $65 per sqft is average for base level units. Second, I believe I can get $1.10 per sqft per month in rent after looking at comps. Third, I am planning on using an architect but I am wondering if there is a company I can get plans for a better rate then paying an architect locally.  Finally, I have been talking to a few people regarding financing for the land and build costs but I have been having trouble finding terms at a reasonable rates. I plan on getting a conventional loan for the land as most of them have homes on them currently and I will move into the home of the property I purchase.

-What is a realistic build cost per sqft in Texas for a base unit 2/2 with a 2 car garage and a basic 2/2 ?

-Is adding garages to each unit worth the added expense? 

-What are ways to get higher rental rates than local competitors?

-What are the average rates you are seeing on new build loans with 20% down on a multi unit building?

-Is it better to get a commercial loan over a typical build loan?

-What are some good online architect companies to get plans from at a reasonable rates?

Good post. I will be making some calls next week.