All Forum Posts by: Nick Velez

@Sean Peabody

DSCR loans are likely the easiest way to go about this if the property is already rented and cash flows. Keep in mind that while they are non-qm loans, a majority of the time they still show up on your credit report. While you are vesting in the LLC, you are still a personal guarantor for the mortgage. Some lenders will promise you that their loans don't show up on your credit report and it is entirely possible that they don't report them, but I have seen more times than not that they eventually get reported.

@Valentina Calla

I have heard good things about Joe Manausa up there! Their office number is 850-366-8917

@Mariah Myers

Hey Mariah, why did your down payment increase from 20% to 30%?

Thing have really tightened up on the non-qm side but you should still be able to find lenders who can go 20% on DSCR loans. As far as using short term rent over LTR, lenders typically want to see that you have experience with STR's or the property itself has STR history. On the flip side, I have a lender who will use a lease over the 1007, as long as its not larger than a 25% variance from the 1007. Most of the time, that extra 25% is more than enough to hit a ratio of 1.

This is the story of my life right now! I have contacted 6 different agents and my quotes are ranging from 8-12k if I don't replace the roof and 6-8k if I do. The property was built in 1970 and is 1.8 miles form the coast. Back in December, I closed on a STR that was built in 1970 and is located in central Fl. The roof was over 15 years old and insurance did not require a 4 point inspection. My premium on that property is only 2k a year!

When running my numbers, I expected my quotes to be higher than my existing in Central Fl due to the proximity to the coast but did not expect a 4-5x increase.  On the bright side, the numbers can still work with these high insurance rates and will be even better if this Florida insurance issue gets figured out!

Just want to add that DSCR programs are available for 5-8 units as well!

@Garrett Jennings

I think where in Florida you decide to house hack will play a major part in this. In college towns, house hacking should be extremely easy with long term tenants and you ll be able to collect a premium.I have been house hacking in Gainesville Fl for 4 years now and have never once wondered if I could find tenants. 

@Ray Fajardo

Keep in mind that with FHA loans, 3-4 units have to pass the self sufficient rule. The remaining income from the other 2-3 units has to cover your PITI, otherwise it fails.

To use rental income from your primary residence, FHA loans require that your new primary be 100 miles away from the new one. If it is not, you will eat both PITI payments and likely not qualify unless you have sufficient income.

@Kirsten Kracke

There are a couple things you can do here and need to be aware of. For starters, I think going into a 2-4 unit househack would be a great way to kick things off. As Justin mentioned, you can do 3.5% down with a FHA loan on 2-4 units and you can use income from other units to offset your PITI. If your bank will not let you do this then find a different lender lol. There is something called the self sufficient rule for FHA loans which applies to 3-4 units. In essence, the income from the 2 or 3 other units that you don't live in have to be able to cover your PITI. If it does not, then it fails the self sufficient test.

Another thing to keep in mind is the rules regarding departing primaries and FHA loans. With FHA, your new primary residence needs to be 100 miles away to use rental income from your previous primary to offset the PITI. If you plan on moving to a new primary in the same city, a FHA loan likely will not work for you unless you have sufficient income to cover both mortgages.

Congrats! Keep us updated on the numbers. 

@Kevin Fann

Hey Kevin,

Have you thought about looking more in Central Fl? While we have seen crazy appreciation like everywhere else, the prices are not as bad as south Florida and rents are relatively strong.