All Forum Posts by: Lyndsay Zwirlein

The investment (non owner occ) conventional loans have been around that for months at 85% LTV. More money down (like 25%) should lower the rate. Also agree with everyone else that DSCR rates are better than that with 25% LTV (depending on your FICO). I'd definitely shop around!

Yes any buyer is likely going to have to bring cash, put down 25% on a conventional loan or do a DSCR loan at 20% with a higher rate as you indicated. I've had a situation where a small local lender was able to swoop in and do the deal at 10% down because they didn't sell to Fannie/Freddie. So unless you can find a program like that, the seller will find that any buyer is going to run into the same thing you did. Perhaps the seller could throw in seller concessions to help you buy the rate down to lessen the blow of the higher DSCR rates?

I would recommend making a bunch of phone calls. Call Cape Coral zoning directly to get their rules and restrictions. Also in terms of identifying good areas, I'd speak with several realtors and property management companies to hear their opinions on what sells. You could even try speaking with other property owners about their experiences -- there is a facebook group for just STR operators in Cape Coral and I'm sure you could find someone in there willing to share their experiences.

Check out Pace Morby's content. His strategy is acquiring properties exclusively with creative financing including sub to. 

Zeona McIntyre just posted a video on this over the weekend. She was on her Insights tab in Airbnb and it suggested she open availability for 6 months or greater. She made the change and got 3 bookings overnight. Check out her recent post for more info! Seems to confirm what Leslie shared! 

Quote from @Mike Morehead:

Hello group- thanks in advance for any and all advice. I am looking for financing for deals on STR's in Maui. Wondering if DSCR is an option or what other creative financing is available in Maui. Margins are tight and I want to make sure I know what options I may have. Thanks again

Yep! There are DSCR lenders who will lend here. Also have you considered conventional?  The terms are much better on conventional versus DSCR (lower rate, no PPP, etc). There is a conventional investment home loan that allows you to use proposed rental income on the property to help you qualify. If you think there is a chance your DTI can support it, I'd try reaching out to local lenders and brokers who are licensed in HI.  

Congrats!!! Sounds like a successful super bowl season. Did you notice any difference in quality of tenants when you reduced pricing? 

Rent should be set at market rent in the area for similar dwellings, versus being based on your mortgage/covering your own expenses. Also it might be at a discount compared to what others are charging in the area if you intend to be doing work on the property.  I would over-disclose the work being done to avoid any complaints!

Quote from @Dean Diamant:

Hello everyone, 

I'm looking for ways to finance my first investment property and would like your opinion on how can I play my cards right.

I'm in the US with a tourist visa so I'm allowed to stay up to 6 months so I don't have SSN. I opened an LLC, got 50k$ saved up, the properties I'm aiming for costs around 170k including fixing and everything.

What would be the cheapest way to finance or even refinance a long term deal if I don't have SSN or credit score at all?

Thank in advance.

Without US credit, you can do DSCR and typically the max LTV is 75% on a purchase.

Hey Quincy! Regarding #1, the lender will require you put cash as the down payment -- they won't allow you to use projected rents as a credit for the DP. 

Also I'd check around with many lenders because depending on how many units (typically 5+), they might require more money down on the purchase (versus if it's 1-4 unit property).