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Updated 12 months ago,

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3
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Chris Adams
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3
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DSCR Loan Advice and lending question

Chris Adams
Posted

I currently own two commercial properties outright. One has a base rent of $6488/month with 3% annual increase in WA State with 5 years remaining on lease with two 5 year options. The second has a base rent of $6998 with a 3% annual increase starting 2026 with 9 years remaining on the lease in the state of LA. Both are commercially backed. 
the properties combined are worth north of $2.1M and $336K in annual rents. 
I need to pull around $700k from them from for my 2023 tax liability. 
I was looking for properties to add to my portfolio and to bundle them under a DSCR loan rather than a cash out refi.

is this possible? Does anyone have any ideas? Any lenders? 

I found a property I really like that has an annual cash flow of approximately $175,000 over two properties. Ask is $2.45M. 

Can I bundle the equity I have in my two properties, purchase these new properties and obtain a DSCR loan while pulling out $700k in equity? This would push my annual NNN rent to around $340k for a $3.2ishloan. That would still keep me at around 30% equity in the combined properties as well.

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