All Forum Posts by: Ko Kashiwagi

Hi Jose,

Congratulations on acquiring 2 rentals so far.

It won't hurt to consider a second position financing (HELOC/HELOAN) as it won't cure costs on the front and it may add to your tool belt. Second position on investment is not easy but it's out there. Typically these loans are evaluated based on personal income/DTI, but there are rare options that will underwrite based on DSCR so your personal income doesn't need to come into play. However, it's important to note that using HELOC/HELOAN to fund downpayment is rather risky.

All in all, there's a couple of options:

1. Look into second position financing - HELOC/HELOANS

2. Consider refinancing - probably not the play unless you have a smoking hot deal that yields good returns

3. Transition into more value add projects rather than rental investing to cycle cash better - BRRRRs/flips

Hi Justin,

What kind of deals are you getting into? Happy to take a look :)

Hi Jack,

Who do you know in Cleveland? If you have connections to reliable contractors, PMs, agents there then it may be an easier starting point especially considering Charlotte's average home price is more than double of Cleveland.

Charlotte is probably less favorable for BRRRR given a lot of SFHs won't debt cover at the highest leverage but if you're open to flipping. I'd recommend going to a local meetup in Charlotte and finding out more details of the pros and cons while building relationships

HELOC or HELOAN would be great if you can find the right program and qualify. Typically, underwriting will be based off of personal income so you'd need to meet the DTI requirements and show ability to repay - which you can qualify with either tax returns or bank statement. I recently did this for a Sacramento property.

Otherwise you could do a simple cash out bridge loan and get typically up to 75% of current value and sometimes more and benefit is these are business purpose loan so you can have the property vested under LLC and it won't ask for income metrics

Congratulations on the first house. I agree with the others - unless you are getting rid of the PMI conventional at 5% down sounds like a much better option. Conventional has slightly higher rates but Underwriting is less stringent as well

Are you able to pull a second position on those income producing properties? If you have enough equity you could do a 70% CLTV second position.

If you want true private money (like an individual) the best route would be family/friends or go meet them at local meetups. A lot of "private money" lenders are private but they still have guidelines/teams

Welcome to BP! What made you pivot from SFH to MFH?

Hi Patrice,

Are you getting into ground up or fix n flips?

I work with both seasoned and beginners. Happy to chat:)

Is the purpose to lower the rate or to pull cash out? As long as you don't have PPP and it's worth doing both DSCR and conventional should be an option to use the newly appraised value

What are the values looking like per properties? Typically portfolio requires 300-500k+ and if you don't want PG it will further limit options but it might still be eligible (probably not the best rates).