All Forum Posts by: Ko Kashiwagi

Hi Frank,

There are programs out there that have much less prepayment penalty. A lot of people opting for lower prepayment in the expectation to refinance in 1-3 years. There's also 40 year DSCR products that are not 10 year interest only but truly 40 year amortized.

Many people lose money on their first flip so this is not bad at all for a first one. Probably the best way is to find a good deal and bring an experienced flipper onto the deal. Otherwise, you could attend local meetups, join mentorship programs or work with investor-friendly agents.

Hi Alyssa,

As others have stated, the property would not clear a Rent/PITI (DSCR) ratio of 1 at the values you mentioned. Also 1k and 1.4k a month is a big difference, so it will be important to nail that down. The lender will use the lower of the market rent or the actual rent. Assuming you want to cash flow positively, you'd need to opt for a lower LTV.

Hi Yael,

As others have said, it's probably best to do research as it's market dependent. On top of using softwares like AirDNA, it would be a good idea to look into actual listings in the area and check their occupancy rates

Hi Carrie,

Did you analyze the property through tools like rentometer or biggerpockets? Rentcafe, zillow, avail are some I've heard people use

Hi Chase,

Have you asked for the rent ledger? You can see whether payments are made, on what date, for how much, etc. I recently dodged a bullet when I realized odd payments on the ledger.

Hi Tara,

You can put your partner as a guarantor to qualify with higher credit score. Usually they have to have more than 20-25% ownership in the LLC.

Hi Josh,

If it exists or not, yes it exists. But it usually only comes in 2 forms:

1. The lender is an individual, private and has great relationship with the borrower + borrower has a lot of experience

2. It requires the borrower has significant experience and is very costly (in terms of rates/origination)

It's generally really risky to do 100% financing especially if you are inexperienced. One mistake and you can be completely under water. There are programs out there that finance 90% of purchase for first time borrowers. The 10% different seems small but it can make the difference between getting foreclosed or not.

Hi Mikal,

If you're curious of the rates and terms, you can get quotes on both conventional and DSCR. Conventional typically provides better rates (right now it's closer than usual). DSCR would be less headache and allows LLC vesting. It sounds like the property has good cash flow, so you could be eligible for both assuming you're income/DTI looks good.

Hi MJ,

Typically, LTV will be reduced to 65%, and numbers may look different depending on whether there are comps in the area or not. I've seen local lenders sometimes being able to offer higher LTVs.