Looking for Advice on Investment/DSCR loans
I'm looking at purchasing a property with the money going to roughly 50%, for the initial investment, and 50% for renovations. I'm leaning towards getting a DSCR loan, but have no experience with this type of loan. If this isn't the type of loan which would be recommended, if anyone knows of a different loan that would better fit this situation, please let me know. Also, if anyone has any experience with DSCR lenders online, I would love to hear any recommendations.
Thanks,
Gene
Most Popular Reply
#4 Medium-Term Rentals Contributor
- Lender
Hi David, you will need to use a hard money loan for the initial purchase and rehab. DSCR loans are only for rent ready properties (no "subject to" or min less than $2,000 in deferred maintenance). You can refinance into a DSCR loan once the renovations are completed and get out of the higher interest debt. DSCR loans are a great option for investors looking to scale their portfolio as they are property specific and allow you to close in an LLC