All Forum Posts by: Erik Estrada

Hi

I applied for a DSCR loan to cash out on a free and clear 4plex held in an LLC but the loan officer is asking for my personal bank statements, personal home mortgage statements. I don't understand why I need to submit these personal documents. My FICO is 812 and LLC has enough cash reserves and rent to service the loan. Should I submit the personal documents or find another mortgage company?

Thanks for your reply Erik. I am in Florida but the investment property will be in Arizona. Is there another method to obtaining a HELOAN other than cash refi? 

@Erik Estrada

Hi Erik, I wish I could househack but I can't so investment. Btw how long would I have to live in the property before I can turn it into full investment.

My investment account is currently worth $380k.  Would you cash it in in order to make a 25% down payment on a 16 unit apartment complex?  I would have to pay about 35k in capital gains.  

Here are the numbers:  

$1.4 million purchase price

25% down, $350k

$10k in closing costs

$1,050,000 loan amount @ 5.25% interest 15 years

$8,441 monthly mortgage payment - $101,292 yearly

$7500 yearly insurance

$20,000 yearly property tax

$10,000 maintenance?

Total yearly cost - $138,742

Average rent currently $850 per unit, 

Year revenue = $163,200

163,200 - 138,742 = $24,458 profit.  Feels like not a great number.  

Each unit is 2 bed, 1.5 bath,  4 buildings, 4 units per building.  Built in the 1990s.  Roof is 8 years old.  No issue keeping it occupied.  Minor improvements needed. I believe rent could be raised $50-$100.  That seems to be were the opportunity lies, in increased rent.  $50 increase in rent = 10k a year for all units.

Thoughts?

Hello all! 

Currently looking at my financing options as i currently do not have a W-2 job (self employed) so a conventional loan is out of the question.

Through an agent i know, i discovered the DSCR loan which does not take into account my income.

For those who have experience using this type of loan. What are some things to look for when searching for these types of loans and where did you find the lenders you ended up using?

Thank you for your time in advanced. Looking forward to chatting!