All Forum Posts by: Jason Bobby

@Jason Bobby I have tried Stessa and I didn't Like it, I am an Accountant and went to School for Accounting, so for me I needed a software that allowed me to make Journal Entries and at the time I used Stessa, I was unable to do that, and I did not like the way the reports read when I pulled a P&L & Balance Sheet.

I have found Wave to be a decent software, it is just a free General Ledger Bookkeeping software, not industry specific at all, but allows integrations. It can be cumbersome at some points but it's free and you get what you pay for. I will upgrade to QBO in the future for my Businesses, due to my knowledge of it, then one day I may have more industry specific Bookkeeping Software for Real Estate but we will see. 

@Jason Bobby I have tried Stessa and I didn't Like it, I am an Accountant and went to School for Accounting, so for me I needed a software that allowed me to make Journal Entries and at the time I used Stessa, I was unable to do that, and I did not like the way the reports read when I pulled a P&L & Balance Sheet.

I have found Wave to be a decent software, it is just a free General Ledger Bookkeeping software, not industry specific at all, but allows integrations. It can be cumbersome at some points but it's free and you get what you pay for. I will upgrade to QBO in the future for my Businesses, due to my knowledge of it, then one day I may have more industry specific Bookkeeping Software for Real Estate but we will see. 

It's interesting watching DSCR get more and more attractive over time, just by the mechanism of DSCR rates/fees/terms barely moving.... meanwhile, Fannie Mae seems to be doing her darndest to "price match" upwards to meet up with DSCR and fist bump. At some point, maybe soon who knows, it's just going to be "pick your poison, rate and terms will be about the same either way... do you want to upload a bunch of paperwork (Fannie) or do you want to pay 1.25 discount points (DSCR)?"

As recently as 6 months ago, there was no comparison. You took Fannie if we could, and DSCR if you had no choice.

@Jennifer Roberts thanks for posting. Lots of opinions here and some good ones at that. The main thing I want to point out here first is that you should NOT be "maxing out your DTI" with a conventional loan. At least, you shouldn't be working with a lender that sees it that way. Each rental property we purchase we cash flow, right? I mean, that's the point....so hopefully that's what you are doing. So if I cash flow with each property I should look BETTER with the more properties I own. Make sure your lender is counting that rental income to help you qualify. If they aren't, then go to a different lender. None of this "it needs to be on your tax returns" or "seasoned" or anything like that. I need rental income to help me qualify right now. Every time. But even if you do look amazing after each property you own - the conventional side will limit you to 10 loans (there are some exceptions here but for the sake of time let's run with this). So once you hit 10 THEN we do the DSCR loan.

I hope this makes sense but feel free to post more if you like.  Thanks!

DSCR Loans are always more expensive, the rate and closing costs. Currently rates are 6% - 7% across the industry and will go higher. You will also see rates on investment properties go up at banks in the 6% range fairly quickly as well.

The benefits to DSCR? No DTI, taxes, or employment checks so the loan is easier to qualify for and the commercial mortgage doesn't show up on your credit and background reports. The loan will not affect your DTI and there is no cap on how many notes you can have outstanding at one time. Also HIGHER LEVERAGE for purchases and refinances. Last but not least, close times! They will be inside 30 days in most cases.

The main qualifiers,

1. Property has to cash flow 

2. Can't be rural (need to have sale & market rent comps)

3. Credit score matters (700 + for high leverage)

4. You must hold the property under an LLC or CORP

5. Must be rented (or willing to get it rented soon)