All Forum Posts by: Nicole Lockwood

Quote from @Michael Haynes:

Hello Nicole Lockwood in Tampa? Do you know what "Arbitrage" is? You Rent a House that you can Rent to someone else for more per month for Cash Flow. That involves informing the Owner and getting permission etc. STR it? You can Rent a Big House to live in and just rent Rooms if you can stand to live with other people. House Hacking is a beginng. And to fix up your Credit? You can get a JOB and pay your Bills on time. Go study with Dave Ramsey and do his "7 Baby Steps."

How bad a credit are you talking (score / credit event in your history like a recent foreclosure or bankruptcy)?

Hello Nicole Lockwood in Tampa? Do you know what "Arbitrage" is? You Rent a House that you can Rent to someone else for more per month for Cash Flow. That involves informing the Owner and getting permission etc. STR it? You can Rent a Big House to live in and just rent Rooms if you can stand to live with other people. House Hacking is a beginng. And to fix up your Credit? You can get a JOB and pay your Bills on time. Go study with Dave Ramsey and do his "7 Baby Steps."

Quote from @Nicole Lockwood:
Quote from @Mercy Odefor
Hi Nicole, have you thought of using the rental arbitrage way? I currently have some landlords-approved STR properties in Kissimmee and the Davenport area, if you are interested, let me know. I can also help you manage the property.
 Hi Mercy,
can you briefly explain what is rental arbitrage?
 Airbnb rental arbitrage is the act of renting a property long term and then re-rent it short-term on vacation rental sites like Airbnb or Vrbo. Definitely with the landlord's permission. Do your research, if you have to try this before buying your own property, let me know. I can also help you with a step-by-step guide on how to set the property up for Airbnb with the right team

Hi Nicole, have you thought of using the rental arbitrage way? I currently have some landlords-approved STR properties in Kissimmee and the Davenport area, if you are interested, let me know. I can also help you manage the property.

Quote from @Nicole Lockwood:

are there any specific type of lenders i should work with to get my credit up?

It's not that lenders do anything on their end to fix your score, but they can pull your credit report and identify the areas that are harming your score and then set up a plan to help you fix those. 

Do you know any real estate agents? They will always know a good lender or two. You can also the "find a lender" tab on this site.

@Nicole Lockwood

No real distinction between buying an STR property and just ... buying a property in general. Which is to say, like @Matthew Crivelli, you're going to have a hard time getting a loan with bad credit.

Now, some DSCR lenders don't require super high credit, but most want to see upper 600s. A DSCR loan is more based on the asset's revenue potential, not your personal qualification, so if a vacation rental/Airbnb property can make money, you might qualify.

But even if you could get a DSCR loan, I'd question whether you should get a DSCR loan. Those loan products have higher interest rates. And bad credit usually equates to a tighter financial situation, so taking on a higher-interest rate loan is a risk for someone like you. 

I'd work with a lender to get your credit up so you can qualify for a conventional loan.

Do you have a buy box? Budget and financial goals? Have you created your A team of financial, legal, RE mentors, growth consultants, cleaners and contractors, etc? A lot of being ready is the team you build around yourself.