All Forum Posts by: John K.

Hi Brandon, I've worked with RPM Sunstate that works that area. They are reliable though a bit expensive between the fees they charge the landlord as well as the tenant.

John

DSCR stands for Debt Service Coverage Ratio. It's a financial metric used by lenders to determine the ability of a borrower to cover their debt obligations, particularly in the context of commercial real estate financing. DSCR loans are loans that are evaluated based on this ratio.

Here's how it works:

1. Calculation of DSCR: The Debt Service Coverage Ratio is calculated by dividing the property's projected rental income by its total debt service (the sum of principal, interest, tax and insurance payments on the proposed loan). ​
2. Interpretation: A DSCR of 1.0 or higher indicates that the property's gross rental income is sufficient to cover its debt obligations. A ratio below 1.0 means that the property's income is not enough to cover its debt payments, which can be a red flag for lenders.
3. Lending Decision: Lenders typically have minimum DSCR requirements that borrowers must meet in order to qualify for a loan. The specific threshold varies depending on factors such as the borrower's credit score, the type of property, and LTV. Generally, a DSCR of 1.15 or higher is enough to get the best rates, but we can work with anything above 1.00.
4. Drawbacks: DSCR loans carry at minimum a 1-year pre-payment penalty, which conventional loans do not. They also have a slightly higher interest rate.

In summary, DSCR loans are loans that are evaluated based on the Debt Service Coverage Ratio instead of the borrower's personal income. This can be great for investors that have the down payment to buy a property but don't have enough documentable income.

Feel free to reach out to me to learn more! 

John

Hi Stephen, 

Welcome! Sounds like you have a great background to get started. There are some unique loan options available for STRs--feel free to use me as a resource for any lending questions! 

John

Hi Margaret, 

I definitely would not change my investing plans based on predicted climate change. There are plenty of things that can be done with current technologies to combat the effects, whether it be to hold back the ocean (just look at New Orleans--has been below sea level for hundreds of years) or AC units that are becoming more and more efficient each year. Even if the worst predictions become a reality, hot and coastal areas are still going to be nicer places to live than the Midwest. 

John

Hi Luis, 

I would agree with most saying that what matters is revenue/profit over number of properties, so one property can indeed be better than two. There are loans that allow you to use projected short term rental income to qualify as well. Feel free to reach out with any questions!

John

Hi James, 

Personally I recommend house hacking a duplex in your area. It'll allow you to get a lot more with a 5% down payment than you'll be able to get buying an investment property out of state with a 20-25% down payment. 

John

Hi Declan,

Welcome and congrats on starting your journey! I'm a mortgage broker covering all of Florida and would be happy to be a resource for you. I work with over 100 different lenders that have any program imaginable including Conventional/FHA/VA/USDA, DSCR, interest only, Airbnb/Short term rental loans, HELOCs/HELOANs and many more. Feel free to reach out with any questions or to get pre-approved!

John

Hi Allen, 

Welcome! Jacksonville as a whole is experiencing great appreciation, so you really can't go wrong as far as areas go. Certain areas will cashflow more but may also be more difficult to manage. Depending on your situation, there are also interest-only loan options that can increase your cashflow. Feel free to reach out with any questions! 

John

Hi Joey, 

Welcome to the forums! I am a big proponent of buying a 2-4 unit property, living in one unit and renting the other(s) out. It allows you to take advantage of a primary residence loan (lower interest rate and lower down payment requirements) while also becoming a landlord. The rules just changed for Conventional as well, and now only a 5% down payment is required for these 2-4 unit properties. Feel free to reach out anytime with questions! 

John

Hi Anya, 

Welcome to the forums and to the state of Florida! I am a residential mortgage broker serving all of Florida. I specialize in investor loans and work with over 100 lenders that offer almost any program imaginable, including Conventional/FHA/VA/USDA, DSCR, Airbnb/Short term rental loans, HELOCs/HELOANs, Interest-only loans, and many more unique scenarios. Feel free to reach out anytime you have a client looking to get approved or if you just have questions on a scenario that comes up.

John