All Forum Posts by: Jack Mawer

Welcome to Bigger Pockets Alex! Thanks for sharing your backstory. Real estate is definitely a good place to gain financial freedom, I wish you luck in your journey! 

 Agreed on the healthier market, lots of overpriced homes in Texas that are finally getting more reasonable...

I would look at AirDNA for STR projections in the area and then compare that to the market rent for a long-term lease. There is a rent estimator on Bigger Pockets under tools if you want to take a look at that. The biggest thing that I would be careful with is determining if people will rent out this property year-round as an AirBNB or if it would have high occupancy in some months and no income in others. At the end of the day, STRs generally produce more annual income in most markets than a long-term lease would, due to what you can get away with charging per night rather than a monthly rent.

Even with the current market, if you have a low DTI and a very high FICO I feel like you would be able to find a conventional loan that will give you 85% LTV.

It does depend on your FICO and the property cash flow, but I'd say most DSCR lenders are capped at 75% LTV right now.

Are you against a construction or hard money loan?

Kimberly, I know you said you are looking for private money but what type of loan are you pursuing and is it a single-family residence?

Danny, you are correct in that a DSCR loan that is non-qm will strictly focus on the cash flow of a property rather than your W-2, 1099, etc and this would be a good way to go in your situation. I would look for a lender who is transparent up front about the terms of the loan and is able to close in a timely manner with light documentation.

Seth, a DSCR loan is the way to go for this as it is strictly focused on the property cash flow rather than business income.

 Please do, thx!