All Forum Posts by: Ash Hegde

When you reach a limit with conventional loans in your name (either because of debt to income ratio or 10 property limit) your next best option is to buy with an LLC and get a DSCR loan. These loans are based on the property rents vs mortgage payment and ignore your personal income. They have higher rates and fees than conventional but you can keep your portfolio growing.

AFAIK that transaction would show up as a long term capital gain on your S-Corp K-1 and be taxed at the capital gains rates. 

If you buy a property through an LLC and get a hard money (short term for purchase and rehab) or DSCR loan (long term for buy and hold) you will not need to prove your personal income with tax returns. The lender will only be concerned with your credit score and performance of the property itself.

The REI group meeting should be great for both. Even if those particular people aren't in attendance, it's very likely that you can get some referrals. Welcome to Florida!

Best to talk to an accountant, but square footage is a good method. If the two units are identical you could split those expenses in half. 

A lender will use 75% of projected rents on the non-occupied units to offset the mortgage and help you qualify for a mortgage. 

On the personal side, it's really up to you how comfortable you are risking that the other unit(s) will be vacant and if you can afford to pay the whole mortgage at times. 

If you have your own cash for purchase and rehab, yes it is possible. There is also the option of getting a rehab loan like the FHA 203k to buy a distressed property and fix it up to force equity.

Getting hard money for purchase and rehab will not work for a primary though. The lender will want it to be for investment property only.

Yep, it's 12 months now. The way around it is to get a DSCR loan that can be cashed out in as little as 3 months. It will come with a higher rate and fees than conventional but it lets you get your cash back in a much quicker time frame. It also ignores your personal debt to income ratio and goes off the rents vs mortgage payment of the property in order to qualify.

We could likely help as well. Keep in mind, even with a DSCR loan they will want a personal guarantee and will pull your credit.

Good news! An LLC will not need 2 years to build credit so you can purchase your next property and you will not need to move rentals into the LLC to show business revenues. You can get a DSCR loan with a new LLC and the loan will be qualified based on the rents vs the mortgage payment. Your personal credit score counts but personal debt to income does not. These loans have higher rates and fees than conventional but at least you can keep your portfolio growing.