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Updated about 2 years ago on . Most recent reply

User Stats

230
Posts
51
Votes
John Matthew Johnston
  • Investor
  • Beaver Falls, PA
51
Votes |
230
Posts

Conventional, Heloc or Commercial???

John Matthew Johnston
  • Investor
  • Beaver Falls, PA
Posted

My wife and I have just bought our 8th door and we use the Brrrr strategy. We have always went for the 30 year fixed because our goal is CF and we plan to hold for a long time. I am only a nurse and my wife is a stay at home mother basically so we arent high income earners . We recently started to run into DTI issues and a commercial lender said I shouldn't be assuming mortgages in my name anymore to avoid this issue. The last 2 loans I took out were commercial loans with 5 yr. ARMS that aren't fixed and I just dont like not having a fixed rate. My question is what would be my best loan option to get the longest amortization, fixed and decent rates without assuming loans in my own name or should I just keep trying for conventional loans and max out the 10 conventional loans rule. I have always struggled with the Refi aspect and what the best options are. It seems like everyone has a different opinion of it.

Most Popular Reply

User Stats

332
Posts
333
Votes
Jacob St. Martin
  • Investor
  • Charlottesville Virginia
333
Votes |
332
Posts
Jacob St. Martin
  • Investor
  • Charlottesville Virginia
Replied

Hello John, what kind of assets are you investing in? Based on your post it sounds like it is single family homes. I am honestly surprised that you were able to get a commercial loan for them as single family homes and multifamily are evaluated very differently. Assuming they are single family though, the DSCR loan is exactly what you need. The lender will choose to lend to you based on the cash flow of the deal not your DTI. If you have some properties that are >15=20% equity you should look into refinancing a couple into DSCR loans which will lower your DTI or just use DSCR loans going forward.

  • Jacob St. Martin
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