All Forum Posts by: Issac San Miguel

Hey Robert,

If you're only looking at a short term period I would consider a 5/1 ARM DSCR note.

This note is based on the cashflow of the property.  With that value and leverage you would get the best rates out there,  probably in the low 7s.

The property specifics as well as your credit score will determine the down payment.

You could likely get it down to 20% down - if if needs renovation, you could certainly get a fix and flip loan, which can be "flipped" out of into a long term DSCR Loan.

Hard money can typically fund up to 80% of the entire project, with the bulk of your "skin" in the game going towards the down payment of the property.

Happy to answer any questions you have.

Thanks!

Hey Jennifer!

It sounds like you may have found a great deal! Underwriting takes a bit longer on multifamily but can be done in the time frame you are needing.

Good luck and feel free to reach out for any questions!

Hey Brad!

Hard money loans are available for these types of fix and flip properties. 

Hard money lenders usually help with 70% to 75% of the purchase price for first time investors. You can use that $75k as a 25% to 30% down payment. They will then fund 100% of the rehab paid in draws. 

The way this works is you will pay for the work out of pocket and call in for periodic inspections as you work through your project. The hard money lender will then reimburse you for your costs to keep you as liquid as possible. 

Each lender is different and some have different criteria. 

Once you refinance out of the property the cash out is yours to keep after paying back the hard money lender the total balance of the loan.  The remaining proceeds of the refi are yours to keep, and you have most of not all of your original investment returned to you as well as a hopefully cash flowing property in your portfolio. 

Like others have said, rinse and repeat.




 

There are plenty of DSCR options available right now. Without knowing what your goal for the property is I would recommend looking into all your options.

If lowest possible rate is the goal, look into a 5/1 or 7/1 arm. 

If lowest payment is is the goal look into interest only options. 

The rates at this point are still lower than inflation at 8.6%. Your money is much better served. 

Beach houses have wonderful cashflow on the str market. 
 

 Look into a 30 yr with a 10 yr interest only period for max cash flow if that is your ultimate goal. 

Lender's won't touch it without a personal guarantee. They don't want the house -they want surety that you will pay them back.

Mid term rental would be 3-9 months. Think contract workers, travel nurses, insurance adjusters etc. 

You wouldn’t need 20% down to refi a property you already own…. most lenders will go up to 75% on a dscr loan based on the rent of the property and not your personal finances.  

What is their incentive to perform for you after you have paid the fee? 

The answer is there isn't one. They made their money.

Hey Evan,

You could easily refinance out of this - the legwork that you have done has put you in a great position to refi and get started.

Happy to help.