Looking to get my second property!

[Sean Starkey]

Here is my situation and if anyone can help that would be awesome. 
we bought our primary residence in Huntington Beach then got a HELOC on that property to buy a short term rental in yucca valley near Joshua tree national park. It is doing good and getting all positive reviews but we aren't cash flowing yet. I have 30k left in reserves and I just spoke to a lender to try and get my next STR but my DTI is too high and he said I will need a partner to get it done. He also said I could wait until my taxes come back to show that my yucca STR makes money but I don't want to wait. I want to get my next house now. He also said I could do a DSCR loan but rate is 8% and 2.85 points. If anyone could help that would be great I really want to get that next property and the next and the next and the next….

[Nick Velez]

@Sean Starkey

There are definitely DSCR brokers out there who can beat that. 2% origination is pretty common with DSCR loans but you should be able to find rates in the high 7's with no points assuming you have good credit. If your property does not have a DSCR ratio above 1 then expect to be in the 8's for sure. There are a lot of properties out there that will struggle to ratio with long term rents but would absolutely kill it as a STR. It is up to you if you are fine not having a cash flowing back up option but you know what they say, date the rate and marry the house!