All Forum Posts by: Stephanie P.

I have a new build in Ocala, FL for $245K with a non-refundable deposit of 10% that was signed in October 2021. 3/2, 1357 square feet, 2-car garage. It’s expected to be ready to close in December 2022. The model looks like this, please check this link. Notice the asking price for the new ones is around $265K - $270K, more than mine. I can’t imagine anyone that would buy at that price at today’s rates.

Rents are expected to be $1650 - $1750. Insurance is around $700/year. Taxes, should be around $4K/year.

I started shopping for rates in early September, and then I was getting mid 6s. As I kept shopping around until now (October 2022), I am getting 7s, 8s, and now some as high as 9.5% for fixed rate 30-year DSCR loans. I am not eligible for a QM loan. I fear this will only get worse in the coming weeks.

By my calculations using 9.25%, 4% vacancy / repairs monthly, 10% property management, I’d be negative cash flowing at least $300 per month, and that’s after 25% down, not 20%. These are with the 5-year prepayment penalty too.

I already own one home built and managed by this same builder and am very happy with it. They are built and managed well, so that’s one plus. I don’t expect much difficulty in the way of renting it, dealing with repairs, etc. And the appreciation has been and should be decent going forward. 

I am at a loss as for what to do. Bridge loan? Interest only loan? Turn it into a short-term rental? Buy it, then sell it just to break even? Just tough out the next couple of years and refinance? Negotiate with the builder? 

I am happy to share my spreadsheet too.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

We are about to purchase our first investment property using the BRRR Method. We would really appreciate any advice from experienced investors on refinancing. Should we purchase under our personal names or open an LLC? When we refinance the rental, we don't want it to be based on our tax returns because we wouldn't qualify. Please help! Thank you!

Hi,

I live in Central Indiana near Kokomo. I'm trying to get to the point of buying a rental property. I am only 21 and currently do not own any property...not even a primary residence as I still live at home with my parents. Is it a bad idea to buy an investment property without first owning a primary residence? 

Hey BP community, I am currently looking at DSCR loans and my numbers never seem to add up to BPs, and I can never get a 1:1 it's always way less than 1.

Here is an example of a property I picked out just for practice. 

BP is telling me that my NOI is $56,424 but when I do the math ($6,800x12=$81,600) - ($4,584x12=$55,008) = $26,592 NOI 

I then take that $26,592/ ($2,487x12= $29,844) = .89

I've tried this formula with numerous properties and have never been able to get over 1. Can someone please explain what I am doing wrong?

Does anyone know of a DSCR lender that allows for a seller-carry second?

Hello all,

I have 5 Long Term Rentals that I converted to STR this year.

I took out 40k from 2 CC to furnish the property and made some repairs.

This lower my credit from 740 to 600.

I would like to perform a Cash out refi to buy another property.

I was told to take out a personal loan to use on the CC to raise my credit score. Then pay off the loan with the Cash out refi.

Should I do this or just try to do a cash out refi?

Thank you for your answers. I'm looking to learn.

I have a friend who has been self-employed for about 6-months. He's doing great & just hired another employee. His understanding is that he is unable to qualify for a mortgage until he has been in business for two years. He's got a down payment & looking to buy his first home in the mid-term future. Does he have other financing options to secure a mortgage prior to this 2-year mark? 

Hi there! 

I've connected with a realtor in Ohio that often gets off market deals. There's a 21 unit off market deal available and the spreadsheet he sent to me has a lot of information with the cost, rental income, market rent, taxes, insurance then at the end of the spreadsheet it has the DSCR calculation.

Is this in regards to their numbers with the DSCR? I thought the DSCR was independent of your personal scenario, so I'm thrown off by them sharing this number - OR - I feel like I'm missing a piece to the puzzle, I've never done a DSCR loan before. Can anyone provide some guidance on this?

Any insight is appreciated!