All Forum Posts by: Ko Kashiwagi

Hi Hemed,

Did your realtor and investors agree with your comp analysis (both on the initial and current)? I know a good amount of Birmingham investors and I know market is slow right now but I haven't heard that much of a decline in the market. It might be worth rechecking numbers and even seeing if the property sells closer to what you need.

1. Refi into another bridge - if it's fully renovated it shouldn't be able to get 75% LTV and even cash out if you want, or you can do rate and term. You could even rent it out to make sure you're not losing while you wait for it to sell

2. Is it really not possible to get DSCR refi? Generally houses worth 200-300k rent in my experience close to 1750-2250 in AL if you can get section 8 assuming you have 3-5 bedrooms

3. Sell subject-to - let someone else take over the hard money loan

4. Sell and cut the loss

Hi Sipan,

BRRRR is tough in Sacramento especially in SFH because it doesn't debt cover at 75-80% LTV most of the time. A few of my clients are actively doing BRRRRs in Sacramento by going for duplexes, adding ADU's, splitting lots and building another SFH. By using these strategy, they are successfully refinancing the entire debt at 75-80% LTV.

Welcome to BP!

Most DSCR programs in the market require 100k loan/purchase price and there's a few that would do 75k purchase price. I've seen exceptions go through at 69k but personally not at 65k. It might be easier to seek financing from local bank... Or if you can bundle with other properties this could work

What's your recommendation for appreciating neighborhoods in Birmingham?

Seasoning would start when land was purchased. With the right DSCR program, you should be able to refinance with no or close to no seasoning. Happy to chat about DSCR:)

The breakeven math is very important and I think it also depends on your cash needs. If you can make a better return by using that cash on a different deal & you're in the "growth phase" most investors wouldn't buy it down because they would prioritize acquiring more properties over maximizing cash flow now.

Are you able to secure the house through a lease option so you can purchase in a few years when you are ready? This sounds a lot easier than trying to buy with no money down with private money, especially for owner occupied residency

A good broker should be able to tell you a range of rates given specific criteria if you can tell them what kind of deals you are exactly looking at (ex. in central Boston, 10-20 unit, 90%+ occupancy, 30% down). In my opinion, once you know the rates for a specific deal, the best practice is to underwrite base on the upper threshold of the range for similar deals to be conservative. And then go back to the broker/lender once you are serious or have it under contract about the deal for exact rates and terms

I would say it's a decent option for most cookie cutter deals. The strongest suite they have it that they are beginner friendly (allows high leverage of first timers), has no appraisal fees most times (virtual inspections) and user friendly interface. For experienced investors or for non-cookie cutter deals (heavy rehabs, low loan amounts, high loan amounts, etc) there are usually better options.