All Forum Posts by: Kristen L Garner

Hey Rob! It depends on how much equity you need to pull out and how long you think you will need it for. I'd run the numbers for a DSCR cash out refi and compare them next to a HELOC and a HELOAN. If you cannot qualify conventionally for a HELCO or HELOAN you could try a non-QM second mortgage.

@Alan Santini Yes, we do rural DSCR cash outs in North Carolina. If you DM me the address I can review it to see if it meets the rural guidelines for no LTV hit.

Hi Sai, I invest in Indianapolis.  I also work with investors who buy in various areas of Ohio.  I'm still seeing investments that pencil out in both states. DM me if you'd like to chat and best of luck! 

Hi Jason, welcome! I personally invest out of state in IN but I work with flippers in IL.  Best of luck and happy to connect if you want to chat anything over. 

Hey Nick, There are 80% LTV cash out options on some DSCR products. You just need to hit a certain credit score threshold and the property needs a .75 or higher DSCR ratio (monthly rental amount divided by PITI). Once you drop down to 75% LTV there are plenty of other options and rates get a little better than what you will see at 80% cash out.

You will want to explore the category of loans called "non-QM". The most popular in this group is DSCR (debt service coverage ratio) where you qualify on the property itself rather than your personal income, taxes, DTI, etc. It is popular amongst investors because you don't get capped at a certain amount of products, it requires less paperwork, and it doesn't look at DTI/taxes/income.
However, there are other loan types in this category as well such as Bank Statement Loans, P&L Loans, Asset Based Loans, etc.
Generally speaking you will be able to get 80% LTV on a cash out refi (as long as credit is decent and property doesn't have any super unique qualities). You will also want to take seasoning into mind. Different loans have different seasoning periods - so you'll want a nonQM loan with low or no seasoning and that will still allow you to use the higher of the new appraised value vs the original purchase price.

Hi! I'd be happy to chat if you'd like to DM me. As far as financing goes - make sure you use a loan officer and loan type that supports your type of future rental income. For example, some DSCR products allow STR income while others don't. Some lenders use appraisers and AMCs who are more experienced in finding STR and MTR rental comps which would greatly impact your DSCR ratio or amount of future rental income that can be used towards your DTI (if doing a conventional loan).

Hey Zeke, There are tons of different loan products so it will be all about finding the one with guidelines that meet the needs of your scenario.
You will want to consider the seasoning period guidelines (how long you have owned the property). Some DSCR products have no seasoning period and some do. If you made improvements you want to make sure that the no seasoning product will let you use the higher of the appraised value and purchase price, not the lower. Like Devin stated, you can also do delayed financing if you purchased in cash.
You will also need to consider LTV. Usually 80% LTV is the max for investment. This means your cash out proceeds would be 80% of the appraisal value, minus any fees associated with the transaction. If it's a unique property or your credit score is low, you may be capped at 75% LTV.
Best of luck!

I work with a great general contractor in your area! If you'd like their info please DM me. Best of luck on your project! 

Sure am! @Rose Jones