All Forum Posts by: Yael Maroko

Great question! I’m seeing more performing notes in the mix lately, but the bigger shift is how investors are structuring deals—tax treatment and compliance can swing returns as much as pricing. Curious what others here are adjusting in their underwriting.

AI says:

In Georgia, property tax assessment appeals follow a structured process with multiple levels of review:

Initial Appeal to County Board of Assessors

You must first appeal to your county's Board of Assessors within 45 days of receiving your assessment notice. This involves:

• Filing a written appeal form (available from your county assessor's office)
• Providing evidence supporting your claim that the assessment is incorrect
• Common evidence includes recent comparable sales, property condition issues, or errors in property characteristics

County Board of Equalization

If unsatisfied with the assessor's decision, you can appeal to the County Board of Equalization within 30 days.
This board consists of local citizens who review appeals and can adjust
assessments. You'll typically get a hearing where you can present your
case.

Superior Court Appeal

The final level is appealing to Superior Court within 30 days
of the Board of Equalization's decision. This requires filing a formal
lawsuit and is more expensive, often requiring legal representation.

Key Points

Timing is critical
- missing deadlines means losing your right to appeal for that tax
year. Each county may have slightly different procedures, so contact
your specific county assessor's office for their forms and exact
requirements.

Evidence matters
- successful appeals typically rely on recent comparable sales data,
professional appraisals, or clear errors in the property record (wrong
square footage, incorrect property characteristics, etc.).

The process is designed to be
accessible to property owners, with the first two levels not requiring
attorneys, though complex cases may benefit from professional help

Be sure to let the lender know prior to the appraisal, what needs to be repaired on the property. Would hate for you to apply for a 30 year mortgage then there is an issue that your lender feels should be repaired prior to closing.
Usually if you are talking about light items .. (paint. carpet, new appliances) You should be fine if it is more substantial than light work -(roof patchwork, mechanical damage ) you might want to work it out with the seller to get it repaired prior to purchasing. Nothing worse than paying for an appraisal that cannot be used to fund the loan especially when the issues could have been identified beforehand. 

Quote from @Yael Maroko:

Hi,

Can I get a DSCR loan on an investment property at the time that I'm buying it even before its rented?

Lets say its an easy rehab and its vacant, the ARV won't be that much higher than the price I will pay at closing, will a lender give a 75% DSCR loan? (or maybe its a different type of loan?) With no seasoning? Will they take an average rent in the area to calculate DTI?

 Hey Yael, 

I am a little confused on the question. Are you structuring this as a Refi or Purchase? 

If It's a purchase, and the rehab is only cosmetic, then generally you should be able to purchase the property with a DSCR loan as long as there is no deferred maintenance or structural repairs needed. The property does not have to be rented and market rent will be used to qualify.

If this is a refinance, lenders will want to see at least 3-6 months to cash out on the new appraised value. Since there is not too much variance on the ARV and Original Purchase Price, Most lenders would be able to do a delayed purchase refinance. Some lenders will allow 100% of the purchase price and rehab cost as long as it does not exceed 75% of the appraised value.

Yes, you can purchase a vacant property using a DSCR loan. The lender will go off of the 1007 page in the appraisal for the rental amount to calculate the DSCR ratio. The 1007 page is similar to the page where they calculate the value of the property, but instead they pull comps and data for rental amounts from similar properties in your area. Most lenders will go up to 80% LTV for a DSCR purchase. Some even go up to 85% but the qualifying guidelines are stricter.

As far as the DSCR ratio you will want to hit 1+ to get the max LTV. If you go under 1 you can still get the deal done but you will likely get a hit in LTV or rate. And if your ratio is above 1.25+ you will likely get a better rate. Best of luck and if you want help running some numbers or seeing what rental comps are in your area, let me know!

Have you considered ordering the appraisal directly so you can re-assign? Of course the lender must be open to accepting it.