First time homebuyer looking to BRRRR my first property OOS

[Jared Seebold]

I am starting OOS because I have about 150k cash and can't afford to buy in California where I live now. I won't qualify on conventional loan because on paper my DTI isn't there (I mostly get paid in cash). My questions here would be once I get to the refinance step in the BRRRR will I be able to qualify on a cash out refi based solely on the cash flow from the property or will I have to go the DSCR route and is the DSCR only for seasoned investors because again this is my first time buying a property. Also would you recommend buying a fixer or turn key property due to the hassle of putting together a team OOS? Looking @ Ohio or Houston. Thanks in advance.

[Ryan Stuckey]

The DSCR-type loan is a typical Refinance step in the BRRRR process. First-timers are definitely eligible, but as this would be OOS and also your first property, you'll very likely need to hire a PM and provide this contract as part of the DSCR underwriting process. And that PM cost % will affect your DSCR ratio, but hopefully not enough to disqualify the loan per DSCR rules.

Good choice to consider Ohio, lots of nice markets here...