All Forum Posts by: Muhammad Amawi

Hey Tyler,

I just sent you a PM

Hey Philip,

Why don't we connect so I can better understand your unique situation.

What I have been seeing and coming across lately is 75% LTV and 8.5%-10% to cash out refi in LLC. If you were open to doing so in personal name, then you would start to come across a little lower rates.

The loan product will also vary as well. Conventional refi in LLC could be slightly lower.

@Carla Kordab

I would definitely rent to a friend. Just be clear from the beginning that when it comes to the lease and property, business is business. 

Setting clear expectations and having everything in writing like any other situation is what matters

Hey Richy,

A DSCR loan qualifies you based on your credit score and the debt service ratio that the house can provide. The minimum ratio you can qualify at will depend on what your credit score is. I've seen qualifications as low as .85 in certain scenarios.

A more common scenario however, will typically require a 1.15 or higher ratio. This means if the payment on the house is $1,000 a month for example, the house will have to bring back $1,150 a month or more. The rental income of the house will be the lower of the appraised rental income or in place leases.

Hey Kelci,

I've just sent you a PM.

Hey James,

I would move back in with my parents while continuing my search if I couldn't find anything. A house hack situation seems ideal here. It's also only a bad time if the deal doesn't make sense with your goals.

Have you considered other areas besides Cincy? Cleveland and Columbus are great markets as well.

Hey Alvin,

If they currently do not own a residence and this would be their first, I would recommend starting with a house hack on a multi unit property and securing conventional financing using only 3% down. Going the conventional house hack route will eat into potential cash flow since less money down causing a higher monthly payment and not being able to cash flow on the entire property since the borrower will be living in one of the units.

Now if they already own a residence and they have the assets, I would recommend DSCR (Debt Service Cover Ratio) financing as the qualification for this is based on the potential rental income being able to cover the mortgage payment and the borrowers credit. However, like I mentioned, they will need the assets as the down payment will range from 20%-30%. This option will also open the doors to better cash flow opportunities.

Hey Elijah,

I've just sent you a PM

Hey Sergio,

Financing properties under 100k can only end up difficult if the purchase price ends up too low. Typically, when financing starts to get below 75k is when issues start to arise as it will be difficult to pass qm due to the loan being a high cost mortgage. 

I'm set up here in Cleveland with a great team of agents, title, insurance, contractors and anything else you may need to start your journey here. Let me know how I can help.

Look forward to connecting!