All Forum Posts by: Deborah Wodell

Hi Donyea,

Great question! For DSCR loans, the property doesn't have to be "turnkey." It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service. However, some lenders may have requirements regarding the property's condition or completion status.

HML's only takes 1st! Better to have your own cash ready or a partner who can bring in cash. If not, you have the option to do an unsecured loan.

Hi! 

I’ve been receiving inquiries for gap funding and would like to connect with a few reliable gap funders that I can refer my clients to. If you're interested in being a part of my network, please reach out!

Thanks!

Can help you with this! 

Hi Kamal,

It seems like you're navigating a common situation when it comes to house hacking and DSCR loans. As you've likely heard, DSCR loans are strictly for non-owner-occupied properties. So, if you're planning to live in any part of the property, these loans wouldn't be an option.

However, if you're considering a multi-unit property (like a duplex, triplex, or fourplex), there's an interesting workaround. While DSCR loans won't cover owner occupancy, they will allow you to use rental income from the non-owner-occupied units to qualify for the loan. You just can't live in the units you intend to finance with a DSCR loan.

If house hacking is a priority, I’d recommend considering other financing options, like conventional loans, which can support owner-occupancy in the right circumstances.

I sent a message! 

What's the problem with the appraisal? 

Hi Rob,

Thanks for sharing the details of your situation! With a credit score below 600, it might be tough to find a lender willing to go as high as 75-80% LTV for a cash-out refinance. Most lenders tend to offer lower LTVs at that credit range, which could make the numbers less favorable for you.

One option to consider is taking some time to improve your credit score. Even a small boost can open up better loan terms and higher LTV options, which would make a significant difference in your cash-out potential.

Alternatively, you could look for a partner with strong credit who can help secure better financing terms. Partnerships can be a great way to move forward on deals while working on your credit.

Hey everyone!

One of the trickiest parts of flipping houses, at least for me, has been figuring out how to accurately estimate rehab costs. It feels like there’s always a surprise—whether it’s skyrocketing material prices or finding something unexpected during the demo—that eats into the budget and profits.

I know there’s always more to learn, so I’m curious—how do you approach rehab budgeting? Are there any tools or strategies you swear by? And what’s one mistake you’d tell someone new to avoid?

Let’s swap tips—I’d love to hear your thoughts!

Hey Kyle, refinancing might not provide significant benefits at the moment, especially with rates where they are. Since your goal is lowering monthly payments for better cash flow, it might be worth focusing on reducing expenses elsewhere or exploring other investment strategies. Keeping an eye on the market for a rate drop could also help you find a better time to refinance. I'd suggest keeping an eye on the MBS market, as suggested by others, and possibly speaking with a few lenders who specialize in VA loans when the timing is right. Best of luck with your journey!