All Forum Posts by: Nithin Mathai
Nithin Mathai has started 8 posts and replied 25 times.
Post: STR Rehab Loan w/ high DTI
- Posts 25
- Votes 7
Quote from @Leslie Anne Morris:
It sounds like you need a fix and flip loan. Instead of the flip you refi out. In your case with high DTI you'd prob need to go the DSCR route which has gotten quite expensive these days. I'd have lenders lined up as you complete the project.
Thank you for your reply. I will look into this route. From what I’ve seen, the DSCR option is around an 8-9% interest rate which the property can produce enough cash flow for.
Post: STR Rehab Loan w/ high DTI
- Posts 25
- Votes 7
Hi BP friends! I am looking at purchasing a home in Vermont to use as a STR/Airbnb/Vrbo and vacation home for my family. My DTI is too high to qualify for any conventional financing.
I am looking at DSCR loans, but don't see anything specific for STR rehab projects. I do see LTR rehab loans and DSCR Airbnb purchase loans. I have a HELOC for about $200k for any down payment/other expenses, but the whole project including purchase ($280-300k), rehab ($80-100k), and furnishing ($30-40k) will cost about $390-440k.
I am reaching out to lenders right now, but are there any products I should be aware of or creative lending solutions that may work for my circumstance? I’d appreciate any input. Thanks in advance!
FYI: The house tried to sell previously and during the appraisal process, the appraiser stopped and the bank cancelled the appraisal since the property had not been close to being completed in its renovation. I’d rather avoid buying the house and refinancing it because of this incident.
Post: New Investor Needing Help
- Posts 25
- Votes 7
Quote from @Damon Bodine:
If the goal is cash make the offers that work for you. The investors i'm working with are making 10-20 offers a week right now. I'm doing the same for my personal investments.
Also don't be afraid to ask wholesalers if they would be interested in JV's . I've had a couple approach with that recently for deals they haven't been able to assign.
Post: New Investor Needing Help
- Posts 25
- Votes 7
I was hoping that wasn’t the case, but I appreciate your advice. Guess I’ll just have to wait and look for other opportunities. Thank you!
Post: New Investor Needing Help
- Posts 25
- Votes 7
Good evening everyone,
I am a newbie to real estate so sorry in advance if I'm missing any info with this post. I have not purchased any homes yet, but have secured a $210k HELOC on my primary residence. I'm looking to grow a rental portfolio but I'm having trouble finding something that works.
I'm not sure if it's just the rising interest rates, but nothing is cash flowing. I adjusted the numbers on the BiggerPockets calculator but I don't expect to get an interest rate on the refinance for less than 7% because of DTI where I would have to look at DSCR loans. I attached copies of the calculator with realistic and ideal numbers. The other issue is rents are probably around $2000-$2100. Even wholesale deals that I found that can be flipped for a potential profit of $50k do not make good BRRRR deals once the refinance is applied with interest rates of 7+. I was thinking about flipping this deal just to start getting some experience since the buy and hold hasn't been working out so far.
I live just outside NYC and am looking in the Hudson Valley and Connecticut. If anyone has any suggestions for what I can do, I would appreciate it very much! Thank you!