All Forum Posts by: Robin Simon

Welcome to BP!  I agree with @Cassidy Burns, house hacking would be a great way to jump in

Yes - Prepayment Penalties are often optional or flexible with DSCR lenders (and can apply to all loans acquisitions, cash-outs, etc.) Will have a huge effect on rates/fees though if you decide to do a DSCR loan with light or no prepay

Please note the differences in the affidavits and commitments on investment purpose and amount of time staying at the properties for these two loan options...

I also agree with the push towards the renovation, STRS need (and will increasingly need) more uniqueness and hooks, and a renovated historical home should beat out another generic new build for a material amount of guests/potential guests

Not bad, but in this crazy and uncertain market its important to have max optionality and contingencies, especially in these types of investments where you can't be sure at all where the ARV is going to hit and an option to refi and hold (BRRRR) should be easy and on the table

Wow, sounds like an amazing experience.  Did you write a blog or book documenting it?  You definitely need to head to Alaska to complete it ASAP

Welcome!

You seem to be on a good plan - get that first year under your belt with STRs is always a great strategy, seen people try to scale and expand too fast

Bank Statements will be needed to show "reserves" to show you have liquid assets to cover X amount of monthly PITIA payments, they will not be used to underwrite DSCR. Depending on the lender and some other factors like size of the loan, generally a DSCR loan will need to show 3-9 months of PITIA in liquid assets, whether that be cash, stocks/bonds account (typically haircut like 10%) or retirement assets (typically 20% haircut). The lender will also typically want 2 months of statements, but only count the ending balance of the more recent month (i.e. for loans closed this month, collect August and September bank statement, and count the 9/30/2022 balance towards your reserves). Lenders will differ, but deposits that are large should typically be sourced just to confirm borrower owns the funds and there is no money laundering going on

Welcome, Houston is a great market!

I agree - 2nd mortgages are risky enough, 3rd is way too much risk IMO especially if you don't have a ton of experience and with rates where they are currently