All Forum Posts by: Stephanie P.

@Stephanie P.What are the typical loan sizes for each tier that have point adjustments?

I would like to purchase a new investment property and use it as AIRBNB to get profit. Based on my employment history I am only able to pull DSCR loan and I am seeking assistance in getting the right lender and doing investment the right way!
Only what's the disadvantages on DSCR loan ? 
What to avoid during pulling DSCR loan? 
How to find a decent DSCR lender?
I am ferly new in this market and would like to learn the ins and outs of investing in real state. I greatly appreciate all the advice and recommendation....

We've always used a property management company for our other rental, but we recently purchased a second rental home close to ours and I thought we'd save some money by managing it ourselves. Now I know what I was paying them for! Our first applicant gave us a sob story and I made a rookie mistake by allowing her to view the property before doing an application screening. She assured me she had enough income for the rental, but it turns out she was counting child support that doesn't exist yet (she says she needs to get out of her current living arrangement before filing for divorce) and SNAP funds from an application that's in process. 

I know I wouldn't be doing her any favors by leasing to her when she can't afford it. Does it get easier to say no? Or should I just count on sleepless nights due to guilt over not being willing to give people a chance?

Hi! We need some advice. We have a place in Palm Springs CA which has acquired a lot of equity.  I can’t decide if we should sell, pay off some debts and invest elsewhere or renovate and keep as short term rental. I am also a high income earner so I am trying to see what’s overall the best. It’s currently a long term rental now. 
Should I consult a tax advisor? 

Any advice appreciated! 

Hi BP- 

buying my 3rd multi-unit property. 

I’m putting a contract on a 4plex 

I’d like to understand which financing option is better:

Option 1 - Residential loan- 7.99%, 30 yrs, 25% down. 3 points at closing plus 2% closing cost.  monthly Mortgage is ~ 1800  Under my name. 


Option 2- Commercial loan. 7.75%, 20yrs, 20% down. 5 year balloon payment.  1% for closing. No points. 
monhtly mortgage is ~ 2100. Under LLC

Option 2 is 13K less for closing. But also lower cash flow every month. 


Any other suggestions on how to analyze the deal. I’d like to use the 13k to buy another property. But don’t like the 5/20 or the lower cash flow.

Thanks!!

Looking for any recommendations on DSCR Loans that will for sure close. Looks like a lot of feedback says they are approved only to not close in the end. Thanks in advance!

New to the Property Investment space but learning more every day. I am looking for any positive and negative experiences, or preferences regarding financing first property. Does DSCR Loan make sense or standard mortgage financing? Curious on everyone's thoughts and experiences. Thanks!

 Fortunately I have my wifes full support to leverage our house as long as the numbers all make sense. I hear what you are saying and I am totally open to all options. I just want my foot in the door and to start this journey. I am also not afraid of risk, I see it as opportunity as long as it is taken carefully and calculated. We currently have about 100k in equity and I would like to use about half of that as funding for our first investment. 

One option we are looking at after some advice from above is the DSCR loan. I have found a couple properties that may be good candidates for this option and even with current rates that I was quoted from my lender, would cash flow. Im not banking on rates coming down soon but if and when they do that will only help. However, when I factor in my monthly HELOC payments of about 500$ a month of IO it puts us in a negative cash flow of around 200$ With my current job I can support that amount and have the HELOC paid off in 3 years which brings us to a positive cash flow. Maybe by then, rates will have come down enough we can refi and be sitting in a good place with solid monthly cashflow.

The other option I am looking at, is as you suggested finding a good rehab deal and get Hard money to finance the purchase. I will have to shop around for other lenders because the one I spoke with wanted 20% down AND only covered the purchase leaving us on the hook for rehab funding. That brings me back to leveraging my equity to pay for the rehab. The risk I see with this is if we see a further decline in new listing prices and rates have still not come down, we will be holding a big bag that is burning a hole in our pockets quickly and no cash flow to cover any expenses. I know this is all a big IF but I like to look at tail risk and be prepared for a worst-case scenario l especially in our current environment.

Hello Folks

I may need DSCR loan for a new construction with the DSCR being under 1. Whats the ongoing rate with this scenario and fees?

I currently have a house under a mortgage and am having a very difficult time finding a way to finance an investment property. There is no chance we can qualify for conventional in our area as anything over 200k will put us over a .5 debt to income ratio. And here in Oregon most locations start out at 250k for a rehab project and 300k for a low end turn key. 

We have found one private lender who maybe would work for a rehab flip project but charging 1% interst only per month and only financing the house means we have to get creative for financing the rehab. I currently have some equity in our home I could tap into but was planning on using that to cover the required 20% down payment for this lender and that would leave only about half of our equity to work with on financing the rehab. 

Hoping to get some insight on other options I can look into other than waiting another year or 2 to save some money for a bigger down payment for conventional lending.