Looking for a DSCR loan

[Dan Hinchman]

I have been a residential contractor specializing in home remodeling for24 years. I cashed out the equity in my home in 2016 and bought my first rental property for cash,- a SFH
BRRRR

I am now up to 8 units,- 4 SFH's, 2 duplex's plus a garage.

I am hoping to move to the next level and start buying 4 - 10 unit buildings

My most recent purchase was a duplex in Aug 2022 for $120k. I brought the building up to code and increased the rents from $16,200 to 21,600 annually.

I have done my previous loans on the other properties with S&T Bank.

Right now, they're offering me
$97k with "a 5-year reset (7.05%) with a 20-year amortization."

My cash flow is $21,600 per year. Using 1.25 as my DSCR, I can support a monthly payment of $1720, or so. On a 30 year loan at 8%, that's around $180,000.

I have 6 other units, all fully occupied and a lucrative contracting business. Thus, my credit score of 774.

I am new to DSCR borrowing, but not new to business, banking, or property management.

I'm looking for my best option

[AJ Wong]

Quote from @Dan Hinchman:

I have been a residential contractor specializing in home remodeling for24 years. I cashed out the equity in my home in 2016 and bought my first rental property for cash,- a SFH
BRRRR

I am now up to 8 units,- 4 SFH's, 2 duplex's plus a garage.

I am hoping to move to the next level and start buying 4 - 10 unit buildings

My most recent purchase was a duplex in Aug 2022 for $120k. I brought the building up to code and increased the rents from $16,200 to 21,600 annually.

I have done my previous loans on the other properties with S&T Bank.

Right now, they're offering me
$97k with "a 5-year reset (7.05%) with a 20-year amortization."

My cash flow is $21,600 per year. Using 1.25 as my DSCR, I can support a monthly payment of $1720, or so. On a 30 year loan at 8%, that's around $180,000.

I have 6 other units, all fully occupied and a lucrative contracting business. Thus, my credit score of 774.

I am new to DSCR borrowing, but not new to business, banking, or property management.

I'm looking for my best option

 HI Dan. Check in with @Joseph Chiofalo for a second opinion and portfolio guidance. We worked closely for 20+ years and they have a host of exceptional DSCR loan options for 5+ units complexes. Good luck!