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Updated about 3 hours ago on . Most recent reply

User Stats

24
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9
Votes
Zulu Black
  • New to Real Estate
  • New York, NY
9
Votes |
24
Posts

Need help analyzing if this is a good DSCR option

Zulu Black
  • New to Real Estate
  • New York, NY
Posted

Got a DSCR loan quote for a 3-family purchase and wanted to get a gut check from the community. Here's the summary:

Purchase Price: $650,000
Loan Amount: $487,500 (75% LTV)
Down Payment: $162,500

Loan Terms:

  • Interest Rate: 7.00% (fixed)

  • PITIA Payment: $4,552/month

  • Eligible Rent: $7,000/month

  • DSCR: 1.54x

  • Term: Standard DSCR 30-year amortization

Closing Costs:

  • Origination Fee: $6,094

  • Lender Fees (UW, Doc Prep, Processing): $1,745

  • Estimated Title Fees (1.25% of loan): $6,094

  • Estimated Escrows: $3,925

  • Total Cash to Close: $180,358

  • Assets Required in Bank: $40,965

Property is a fully rented 10-bed triplex in a strong rental market. We're factoring in 10% for property management, with estimated expenses at ~$25K/year. NOI is around $59K.

Looking to hold long-term with 2 other partners. Numbers work on paper, but wanted to hear what others think:

Are the Origination Fee & Lender Fees high? 

Most Popular Reply

User Stats

361
Posts
102
Votes
Andrew Zamboroski
  • Lender
102
Votes |
361
Posts
Replied
Quote from @Zulu Black:

Got a DSCR loan quote for a 3-family purchase and wanted to get a gut check from the community. Here's the summary:

Purchase Price: $650,000
Loan Amount: $487,500 (75% LTV)
Down Payment: $162,500

Loan Terms:

  • Interest Rate: 7.00% (fixed)

  • PITIA Payment: $4,552/month

  • Eligible Rent: $7,000/month

  • DSCR: 1.54x

  • Term: Standard DSCR 30-year amortization

Closing Costs:

  • Origination Fee: $6,094

  • Lender Fees (UW, Doc Prep, Processing): $1,745

  • Estimated Title Fees (1.25% of loan): $6,094

  • Estimated Escrows: $3,925

  • Total Cash to Close: $180,358

  • Assets Required in Bank: $40,965

Property is a fully rented 10-bed triplex in a strong rental market. We're factoring in 10% for property management, with estimated expenses at ~$25K/year. NOI is around $59K.

Looking to hold long-term with 2 other partners. Numbers work on paper, but wanted to hear what others think:

Are the Origination Fee & Lender Fees high? 

What is the FICO score being used for pricing here? Also, is there a prepayment penalty on the quote?

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