All Forum Posts by: Scott Wolf

Looking for funding options on a $1.42 million SFH in Glendale, AZ, that will be used as a STR.

Hi everyone, thanks in advance for the replies

I'm beginning to look into multifamily property and I'm a newbie.  So simple question (hopefully):

Should I talk with a lender now before I have any properties on the table or wait until later in the process?  I don't want to waste anyone's time, but I don't want to miss an opportunity because I'm not prepared.  

Thanks

@Brian Cauldwell Brian, if I have a DSCR loan on a rental in an LLC, is that going to affect my DTI on a personal mortgage later?

During the pandemic, I bought a 3-unit house hack on the north side of Chicago for $580k with a 10% down portfolio loan through a local credit union. I renovated it, moved out, and it's since been a great investment, now cash flowing significantly with a 3.625% 30 yr FRM. Earlier this week, I got an email from the credit union holding the loan with an unexpected offer. They are willing to allow me to cash out refinance the property with a 30 yr FRM at 5% at up to 90% LTV. A recent comp sold that leads me to believe a reasonable valuation for the property of $800k. My loan balance is about $485k. These terms sound almost too good to be true, the catch being that I need to replace my rate with one nearly 140 bps higher (which is still significantly below market).

Were I to refinance at 90% LTV, my cash flow would evaporate entirely, and I might be slightly cash flow negative until next year when I can raise my below-market tenants’ rents to market, at which point I’ll be modestly cash flow positive again. But at the same time, I will have $235k tax-free in my bank account to put towards another deal which I intend to be cash flow positive. That same amount of money would probably take 10 years to earn via cash flow, and even then I’d have to pay tax on it.

What are the risks of taking this offer and leveraging up again? 140 bps interest rate increase doesn't seem all that bad. I know home values have been softening across the country, thankfully Chicago still seems to be going strong (at least for right now). Should interest rates drop below 5% for conventional mortgages, I know I can't refinance down if my LTV is too low, but other than that? Thanks.

Hey bigger pockets people. I am currently getting denied on a DSCR loan due to the appraisal using long term rental comps. I am the buyers agent and the only financials we have from the seller/airbnb, although look fantastic, do not have the property address on the airbnb financial. It just has the LLC that the seller has it registered under.

Anyone use a DSCR loan and pulled financials from airbnb before? If so, what documents helped underwriting?

So I’m not a complete newbie when it comes to flipping — my brother-in-law’s been doing it for years, and I’ve been involved in several of his projects. I’ve helped manage budgets, materials, timelines — pretty much every part of the process. This will be my first flip under my own name, and I’m excited to make it happen.

I’ve got a great deal lined up in Miami, FL, in a strong neighborhood with solid comps and demand.

Here are the numbers:

Purchase Price: $699k

Rehab Estimate: $150K

ARV: $1.1M–$1.25M (conservative)

Comps:

House 3 blocks away (1,888 sqft) sold for $1.25M

Another ~2 blocks out (1,752 sqft) sold for $1.19M

One about 3 blocks away (1,314 sqft) sold for $1.1M

Mine is 2,032 sqft — larger than all of them.

My question is: Can I realistically get this funded? I’m already speaking with the seller, and the deal is very much in motion. Just wondering if lenders (or even capital partners) would consider working with a first-timer when the numbers are this strong.

Appreciate any honest feedback or direction.

Greetings BP,

I'm looking for any direction on finding a lender for my first GUC for a multi-family project. I've rehabbed before but lenders want construction experience on 1-2 builds. I will own the land free and clear so that won't be an issue. I have my builder ready to go. Just need the financing. I considered just doing an FHA One-Time close loan for a SF just to get a project under my belt. I would much prefer to use the land for a mfh to produce max return though.

Anyone know of any products that will lend with no experience?

What's a good amount of expected cash flow to look for, for a first time investor looking to house hacking a 2-4 Multi-Family Unit?

Private Lenders please

I'm looking for my 2nd investment property and am contemplating the rent by room option. My target location is Nassau County, Long Island. As the profitability is a struggle here on cashflow, I thought rent by room may help get me there. Does anyone have any experience with rent by room in Nassau County? Specifically I'm trying to figure out how many rooms I can rent out of any given property? Does it go by how many bedrooms there are, or is it just a max per site? I ask because if there is a formal dining room that can be converted and I make a 1 bedroom into a 2, the price may be better than a traditional 2 with no dining room. Some of the houses in Nassau County have 4 or 5 bedrooms plus a 2 bedroom basement. I'm new to this, so any advice would be great. Lastly, any thoughts on purchasing a small camper and renting that out as well in the driveway? Just trying to maximize the property.