All Forum Posts by: Tanner Lewis

Hey Malcolm, debt financing shouldn't be an issue; with a DSCR loan, you can borrow within an LLC, and it does not need to exist for a certain period of time. Often, I have borrowers make an LLC during underwriting so they can protect themselves post-closing.

I would aim for a comfortable safety budget before starting! Your target market will really depend on your strategy, so I would nail that down before deciding on the location!

A lot of the time event hosts will not reach out ahead of time, so I would just show up and see if it is still active. I think Meetup.com filters out inactive groups.

Hey Peter - I am 23 myself, and the first thing that motivated me was Rich Dad Poor Dad. After that I listened to as many BiggerPocket's podcasts as possible. 

In my opinion, the high interest rates are not as much of a problem for investors but more so for owner-occupied home buyers. It flipped the market from a seller's market (offering $30k over asking to get your offer looked at) to more of a buyer's market where we can now negotiate with sellers, work out seller financing, or get deals under market value. Now is a pretty good time to buy while the demand for homes is lower, and I would just go after deals that cash flow enough right now and refinance when rates drop. 

I would check meetup.com! Just filter the listings so you are only looking at in-person ones

You can do either. I think a house hack will make more sense if you can negatively cash flow less than what you currently spend on rent (reducing your living expenses but not necessarily eliminating them). If not, I think the midwest is a great location to find cash-flowing deals

It looks like this STR will be eligible for refinancing. If you don't have a full year of booking history, you can often combine booking history (six months in this case) and AirDNA projections. With the booking history, the lender will just be looking to see if you are on track to meet the AirDNA projected revenue for the year.

I agree with the notation that you should increase your income; however, it does not necessarily have to be W2 income. Since DSCR loans are now a thing, I think it makes more sense to get a 1099 job and scale your income faster.

This is the boat I am in, too. I just graduated from UVA a year ago, and I initially had a W2 job. I recently switched over to 1099 so I can increase my income and dump it into real estate. It's pretty hard to invest with $8k since most lenders have a $100k minimum loan amount, meaning you will need about $35k to buy a property after the 20% down and the associated closing costs. 

Hey Parthenia - for the 85% LTV DSCR options out there, most of them are a bait and hook strategy where the lender will bring it on with 85% LTV, and then when the rents come back, they will cut to 80%.

To qualify for most of these on the market, you will need a 780 FICO, 1.25+ DSCR AND you will need to get this DSCR with Long Term Rents. In short it is technically possible for STRs, but very few will qualify for this. 

I'm a big fan of having multiple exit options: if the deal makes more sense to flip, then flip it to increase your cash reserves. If it makes sense to hold onto, then refinance it as a BRRRR. The more exit strategies you have, the lower risk your investments will be.