Looking for DSCR vs Cash Out ReFi advice/referrals on New Construction Rental

[Michael Harrill]

Hi All, I'm currently building new SFR's using a HELOC on primary with the intent of either obtaining a DSCR or traditional mortgage cash out re-fi to repeat the process (build, rent, cash out, pay off HELOC, repeat). W-2 income and credit is strong, but would like to keep the rentals in an LLC. It is a headache to go the traditional route and having to quitclaim the deed, not to mention the time and hoops one must jump through these days. I am a GC and can build cheap enough to cash flow on a new property, so does it make more sense to go the DSCR route? Thanks in advance!

[Robin Simon]

Quote from @Michael Harrill:

Hi All, I'm currently building new SFR's using a HELOC on primary with the intent of either obtaining a DSCR or traditional mortgage cash out re-fi to repeat the process (build, rent, cash out, pay off HELOC, repeat). W-2 income and credit is strong, but would like to keep the rentals in an LLC. It is a headache to go the traditional route and having to quitclaim the deed, not to mention the time and hoops one must jump through these days. I am a GC and can build cheap enough to cash flow on a new property, so does it make more sense to go the DSCR route? Thanks in advance!

 Hi - I wrote an article published right here on BiggerPockets on this exact topic, check out link below, hope this helps!  Would be glad to discuss personalized advice as well!

BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...