All Forum Posts by: Lyndsay Zwirlein

Quote from @Jeffrey Zhang:

The gross rent income is 80k and purchase price will be 1.2m. would like to pay less than 30% down. Could it be possible?

Most DSCR lender do 1-4 units no problem. 5+ units there are still lots of options, but not everyone offers it. From my experience, 5+ units requires 25% down whereas 1-4 is 15-20% down for DSCR. 

Quote from @Mitchell Maginnis:

I am curious as to what fellow investors are putting down as a down-payment on STR's. What is everyone's opinion on this subject? I am attempting to scale my portfolio of STR's and have cash that is burning a hole in my pocket. Thanks!

If you're buying the property as a vacation home and plan to spend a couple weeks of the year there, you can put down 10%. If it is a jumbo, it gets a bit more complicated. Jumbo loan limit for 2023 is $726k.

If you're purchasing it as an investment property, you can put down as low as 15% on a CONVENTIONAL investment home loan (non-jumbo).

DSCR you can put down 15-25%, depending on your situation (property type, experience level, FICO, etc).

The biggest consideration is the more $ you put down, the better your rate will be!

Hey Scott! I'm born & raised in Milwaukee and work with investors across the country. We have DSCR programs for a refi on your mixed use property. As others have indicated, the lender would want to be first lien position so it would be a refinance of your existing mortgage plus HELOC balance. Depending on the zip code, we can do up to 80% LTV. Feel free to reach out if you would be interested in terms on your specific deal!

Like many of the other, we own in the Smokies and I also have a lot of clients who are purchasing there. Happy to help!

Quote from @Terry Landon:

and why?

(single family and multi-units)

What is your goal?

Quote from @Alleigh Follett:

So if we purchase a house at auction with cash, can we immediately refinance into a DSCR loan to get our cash back out?

This can be tricky because all lenders (DSCR and even Fannie/Freddie) are tightening on cash out refis. I recommend speaking with multiple lenders about their specific guidelines before you do this. There are minimum loan requirements to be aware of, LTV restrictions and it’s more expensive to do a cash out refi versus purchase. A lot of lenders offer a delayed financing option like someone mentioned - this allows you to cash out immediately without a seasoning period. There are definitely ways to get this done, just make sure you know the guidelines in advance so you’re not stuck! Good luck!

So excited for you guys!! I actually just switched mortgage brokerages about 6 months so recently went through this process. I determined the things that were most important to me to best serve my clients. For me, it was licensure in as many states as possible because my investor clients are purchasing all over. Secondly, as a broker our value is finding great deals and programs for clients. I found a broker licensed in 49 states with over 70 wholesale lenders. My advice is what’s important to him, speak to a bunch of different brokerages and it’ll become clear which one will align best with his goals! Good luck!!

Quote from @Ifeanyi Onyeonwu:

I am unsure if the rate is good. I am concerned about the prepayment penalty of 11k if refinanced before 5 years ( would have paid 120k but 10 to principal) on a 220 cash loan

What’s the FICO and LTV? Also depends if you’re a first time or experienced investor, property type, str or ltr. I would recommend shopping around. 

Yep DSCR like everyone said. But make sure you have sufficient cash saved up and a strong FICO.

What rental income #s did you use to underwrite your deal before purchasing? Is $2400 per month or $28,800 per year feasible based on your research? If so it’s probably seasonality. Also with all of our STRs, we’ve noticed a ramp up period. The first 6-9 months you’re building reviews. Like someone else said, it’s a long term investment and you’ll start to build momentum with time!