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Updated 28 days ago,

User Stats

14
Posts
9
Votes
Thomas Lebens
  • Investor
  • Atlanta, GA
9
Votes |
14
Posts

Can a rookie use a DSCR loan for a duplex?

Thomas Lebens
  • Investor
  • Atlanta, GA
Posted

What's up everyone!

I'm a new investor shopping in the Cincinnati market, and I just want to make sure I'm starting on the right foot. 

Here's the back story: My wife and I are about to move states, and when we do, we will be shopping for a house hack, but in the meantime, we want to get our feet wet with a small multifamily property in Cincinnati. This property will be the first of many, and we hope to continue scaling in Cincinnati over the next few years.

To start out, our plan is to buy and hold a cashflowing 2-4 unit property using a DSCR loan. I have a few reasons for this. 1) We are both self-employed and our income is inconsistent. 2) We don't want to impact our DTI, because we are planning on buying a house hack within the next year or so.

We would be open to going up to 6 units for our first property as long as it's within budget.

Now that you have some context, is it possible for a rookie to use a DSCR loan on a duplex or triplex? (Any lender recommendations? What LTV? Anyone done this before?)

Would my previous industry experience (property management, acquisitions, asset management, Realtor) improve my chances of qualifying for a DSCR loan?

Am I approaching this the right way, or am I missing a better alternative?

Thank you in advance for your insight! I look forward to giving you all an update when we close on our first property!

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