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Updated 25 days ago, 12/04/2024
DSCR out of a DSCR?
About 6 months ago we purchased a duplex using a DSCR loan. The original intention was to do a light cosmetic rehab and rent it out. We put 20% down at 8.25% on a property with a $136k purchase price. Loan is just over $108k. We could have rented it out for about $1600/mo. We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k. Can we DSCR out of this to get our money back out or will I need to sell it to get our $136k total investment out?