All Forum Posts by: Stephanie P.

Hey biggerpockets fam I am having issues with financing and wanted to see if anyone had tips!

I bought 2 properties about 16 months ago, did repairs on them so on my 2021 tax returns my real estate shows a loss, with both mortgage payments my DTI is around 32%, I have 2 self employed businesses and I am having issues getting approved for a cash our refi on one of my properties.

At current situations both properties combined cash flow ~$600 but from talking to a few lenders that doesn't matter since my most recent tax return shows a loss.

I wanted to reach out to see if anyone had gone through this or had ideas for things I could do besides waiting until I file taxes for 2022.

I have cash set aside that I was hoping to invest this year into another property but being held up on the lending side

 I remain in the camp that there are solid justifications for going under 1.00x, including:

-In-place rents lag market rent (most lenders will use the lower of in place and market, so the property will cash flow when the lease rolls but is underwritten at sub 1)

-Going to be used as a short term rental (lender will underwrite as a LTR or give a haircut to STR projections, but you are confident in actuality your STR systems will get it to cash flow)

-Just slightly under 1.00x, but you have a big portfolio of cash-flowing assets, and the tax benefits of the loss in the first year or two of one will be substantial

-you really believe in the market, lots of markets like Austin have made a lot of people very very rich the last few years who bought non-cash flowing investment properties

Hey guys, I have been learning about real estate since high school and I am currently 21 years old. I have been saving for a while now and have about $32k to put down for my first property. The problem is that I worked a w-2 job for about a year and a half, I also refereed basketball and volleyball on the side. I quite my w-2 and became a financial advisor and am self employed. I started in January and haven't made hardly any money because I am still young and starting out and trying to learn the industry. So my problem is that I cant get approved for a loan. I thought about going thru a hard money lender? I would really appreciate any ideas or insight that you guys have for me, I plan on getting a single family home to rent out to start, thanks!

Hi everyone,

I am a house flipper hoping to segue into rental properties in the near future in hopes of earning cash flow. I have short term goals of house hacking a fourplex, and long term goals of owning larger apartment buildings.

My question is regarding debt service coverage ratio (DSCR). From what I've been reading about the types of loans I will be pursuing for multi family buildings, I should be looking for listings where the DSCR is 1.2 or greater. Am I missing something or are properties yielding such a ratio basically non-existent? Are such deals only attainable if you can rustle up a seller on your own and persuade them to sell at a discount?

Would the correct course of action be to purchase a value add property using a bridge loan, rehab, raise rents, and then find a proper loan with better terms?

I should mention that I have a nest egg of about 1.5m at my disposal. Does having a decent net worth afford me any flexibility from prospective lenders?

Thank you for any insight.

I bought a property in March of this year, and can't get a hold of the ground rent owner.  What would you do in this situation?

I've looked up the ground rent owner and it is a poorly reviewed property manager company with several multi-family properties, when I called a listed number they had no idea of what I was talking about.  I pay legit bills when they come, but they're making it hard to give them money.  

It seems that the ground rent owner can only ask for 3 years of back ground rent, and can't take full possession of the house for missed payments.    Should I just wait until they reach out to me?

https://livebaltimore.com/resi...

I know that I can fully redeem it, but it doesn't make financial sense.  

Hi

I applied for a DSCR loan to cash out on a free and clear 4plex held in an LLC but the loan officer is asking for my personal bank statements, personal home mortgage statements. I don't understand why I need to submit these personal documents. My FICO is 812 and LLC has enough cash reserves and rent to service the loan. Should I submit the personal documents or find another mortgage company?

Hi all! So my DTI is currently too high to qualify for a conventional loan. If I go DSCR route how much do they give you towards the house ? I know it's based on income the house makes so that could be tricky question. I need to be creative with financing now to continue to scale I feel stuck. I currently have 1 STR near Joshua tree CA