DSCR Loans - What to ask and what makes a good candidate for cash-out refi DSCR?

[Rebecca B.]

Hi BP community,

I FINALLY finished house hacking a duplex in San Antonio! We lived in it for a year, remodeled both units and put in place a long-term tenant on one unit and a mid-term tenant on the other.

Here's a little more details about this deal:

*   Purchase price: $163k

* Financed price: $132k @ 7.625% APR

*   After repair (estimated value): $225k

*   Gross rents: $2150 ($750 one year lease & $1400 six month lease)

*  Annual taxes and insurance: $7000

*  Approx credit score: 650 (I used interest free credit card to pay for remodeling this property and maxing it out caused my score drop almost 50 pts!) 

I'd like to refinance into a DSCR loan and pull $35k cash out to payoff a HELOC that I used as down payment. My questions for this community would be: Does this deal make sense to DSCR lenders? And what questions should I be asking when I start shopping for a loan? Any advise would be greatly appreciated.