DCSR Loan and forms of Financing

[Josh Calcanis]

Hey BP - I'm finally on the hunt for some new properties for 2022. I've been pumping up the other portions of my portfolio and putting a lot of my time into our startup (which we'll hopefully see an M&A this year), so I'm taking my time getting acquainted with some other forms of financing. I've done the traditional loan route, the cash-out refi and use that capital for another property, and then the FHA route (BRRR).

Through my research and talking with two lenders (one I've used the other is a referral) I've come across a DCSR loan. It reads as a commercial loan, but I still can't get something over 4 doors. It also seems to have some early payoff penalties and higher rates than a traditional investment property loan. The one benefit I've got and why I'm looking at it is the fact that I could get the loan without having to Quit Claim the properties again (all units are in my LLC).

Does anyone have some general advice or experience with a DCSR loan? Would you use this as your last resort? Is there anything I'm missing?