All Forum Posts by: Ko Kashiwagi

Hi Richard,

Since you're paying off the HELOC on the primary, wouldn't you be able to use that HELOC on your primary for the next deal?

You could get the DSCR on first and if your bank allows it do a second position HELOC on the investment property (this would be pretty rare if a bank allows this) but putting DSCR on second would not be ideal. Second position DSCR does exist but rates are even worse than HELOANs, I'd expect 11-13% right now.

Getting a simple cash out refinance sounds like the simplest option, but if you can just get a large first position HELOC only that would be a pretty convenience deal.

Which state?

Hi Kristi,

What is your expectation on the refinance? I see a good portion of my clients opting for the 3 Year PPP because they are optimistic about rates.

And what is the outlook of appreciation for that market? I personally paid a little bit to get the 3 year PPP on my deal because I have relatively high expectation for appreciation for my market, but if I invest for cash flow, I probably would stick to 5 year PPP.

Good luck! Househack would be a great way to get into your next deal if you can

Hi Brian,

Typically Max CLTV (cumulative of first and second position) is ranging from 75-90% on a primary residence. Assuming primary, max DTI is typically anywhere between 43-49.9% contingent on factors like zip code, program, FICO, etc.

Hi Jasmine,

How long have you owned the property and has there been any work done to it? Typically DSCR programs have seasoning requirements from anywhere on average of 3-6 months, which means in order to use the newly appraised value, you would need to wait a little bit (although there are 0 months seasoning programs). If you are okay with getting the loan based on the purchase value, seasoning should apply at all as you can do a "delayed financing".

Is the seller wiling to seller finance? or partially?

Do you have liquidity to close the property in cash? If that's an option you can purchase cash and do a delayed financing in the case financing falls through. If the seller is cooperative, they may let you restructure it with another program/lender...

Seems like a catch 22 situation where you need to loan to increase credit but you need credit get the loan. What does your first mortgage interest look like?

Second position:
A lot of institutional programs for HELOCs cap at 660 or 680 minimum score, but perhaps banks you've already used or local banks can go lower. Or, private money (short term financing) is an option,

If you are willing to do first position refinance, that might open up more options in your scenario

For LOC, it's probably best to build relationships by calling into local banks there. If it's a refinance, brokers or institutional lenders tend to have great terms. Good luck!