Looking for something that might not exist- DSCR type HELCO?

[Adam Sankowski]

Hey I'm looking for any creative renovation financing products out there. Seems like there are always new and interesting ones popping up so I figured that I'd see what's available. Here is what I have going on:

Have a two family w/ an Airbnb in it and I can now build another rental building behind it. Already in the process of getting the zoning for this and this is an  A+ location in a major city.

Tons of equity in the property, the problem is showing income in order to get it out. We also own 11 out of state 1-2 family investment properties so lot of debt already on the credit report even though it all cash flows well.  My wife and I both have W-2 jobs but we don't make a ton because of all of the investment success we have started to work a lot less. 

WIth my "lots of cashflow not a lot of income" issue I had a lot of success with DSCR type loans (where the loan is calculated by the income the property makes not by my own income) for my investment properties over the last few years.

Does anyone have a DSCR HELCO type thing or something for a rehab project to build something that is going to cash flow even more? I know that this is a long long long shot but wanted to throw it out there and see if I learn anything new :) Thanks so much for your time! Also let me know if I'm posting in the wrong forum?

[Robin Simon]

Quote from @Matthew Gaddis:

Yes - Actually a few lenders have just come out with Non-QM Second mortgages for Owner-Occupied and Non-Owner Occupied homes. I haven't seen a HELOC yet. Full-Doc go up to 85% CLTV and a DSCR/Bank Statement only options go up to 75% CLTV.

It seems likely that a product like that would work for you, but they are higher interest, so you would probably need to be looking to refinance out of it shortly after completion, once the new equity is realized. 

My 2 cents would be to look into something like that for the down payment on an investment construction loan and close them concurrently.  

These products aren't typically "DSCR" style instead they are more like non-QM DTI-based products