All Forum Posts by: Tyler Rabanus

@Jonathan Taylor yea I agree this deal will not work and I will end up passing on it. I was trying to come up with some ideas to up the cash flow. Thanks for the response!!

Thanks for clearing that up. Definitely changes the analysis! 

Hi everyone,

This is my first time posting and I had a question regarding DSCR cash out refinancing:

Are the DSCR loan amounts calculated strictly on the debt service ratio or does an appraisal come in to play?

Reason for question: If i were to purchase a SFH for $75k and spend roughly $175k renovating the 3 bedroom home and converting a massive garage into two 1 bedroom apartments, I believe the property would be still appraise for about $220k. The combined revenue as LTRs, however, would be about $3000/month. If I assume a 1.25 ratio, this scenario would allow me recover more capital than a conventional mortgage.

Please let me know your thoughts. Thanks!