I have two lots that I'm very interested in putting in a offer on. The plan would be to put a manufactured home on each along with garages. ARV would be somewhere in the range of 1.6-1.7 once completed. This would them be moved over to a dscr once completed. Rent for both lots would be 8-8.5k monthly. Anyone able to assist?
Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes
2y
Hi Kalin!
I reached out via email as well, but the short answer is that a hard/private lender will be the easiest way if you want to buy and develop both lots at once, in one transaction. Then you can refi into a DSCR once the construction is complete. If you're 1.1M into the project at that point, $8k in rents will yield a DSCR potentially below 1.0 which would limit your loan options. I'm happy to help run numbers if that would be helpful or connect you to a hard money lender. I can help with the DSCR on the back-end, but you'll want to be sure that you've got your exit strategy nailed down before the initial purchase.