All Forum Posts by: Alex Turner

The highest rates I have quoted are in the mid 6's (lower fico and NO DSCR ratio for these) 7.125 does seem high, haven't seen that rate yet.....

Good Point, area seems to be very important when targeting a property for STR. I have also been chatting with some investors and they say it is important to identify the market that your STR would serve. For example, Ken owns a STR SFH 3,200sqft 5 bed 3 bath in Denver. He lives in the ADU in the back so he can do the STR in Denver county. But he has Identified his audience as people coming to the city for bachelor parties or big family gatherings because his house can accommodate 10+ people. It wasn't something I thought of until he brought it up but each property can serve a specific audience depending on what it offers.

DSCR or (Debt Service Coverage Ratio) loans are loans granted on the bases that an investment property will cash flow based on a 1007 Rent schedule appraisal.

The rent schedule is based on LTR rents.

The greatest advantage to these loans that there is no income or employment required to qualify.

I wonder for investors out there that look at properties for STR, when you do an analysis of the property for STR would the property still cashflow for LTR as well? I assume you look at STRs for greater cash flow, but interested on the comparison between the analysis of a property for STR vs. LTR.

Thanks

Thanks @Ben Rhodin

Yes I agree, I know that the Denver market is a tough one right now and as a first time buyer/investor getting into the market seems to be one of the bigger obstacles right now. I intend to house hack for sure. But I also think that there are properties that have a lot of potential for value to be added through rehab. In my opinion doing rehab is the fasted way to increasing value and equity in a property. What do you think?

Would love to connect and talk shop.I’ll shoot you an email.

Ah, I see. Personally I want to get into either SFH or Multi-Family using the BRRR method. Potential do renovations on a SFH to make multiple units. The strategy I have in mind is to rent out a unit or a portion of the house while still paying my full mortgage payment to grow equity faster. Then utilizing cash out refinance or HELOCs to acquire additional properties.

I think the STRs can be cash cows and may be something I'd like to do, however, I think starting with LTR while I build equity is where I will start. @Brian Wilson

@Brian Wilson

Thank you,@Brian Wilson

Right now the most common trend I am seeing is investors utilizing second home loans. This allows for 10% down as opposed to 20% down on an investment property. I have a couple from California that is doing that now. They're jobs are fully remote and they do not intend on occupying a primary residence for a full 12 month, but they just got a new job in Colorado. They want to have a property they can retreat to hear but also utilize for Cash Flow so the second home loan is a great option for them. 

Thornton and Westminster are great areas! 

Hi All, 

I have been listing to the BP podcast very regularly and finally joined the online community! 

I am a Mortgage Broker in the Denver area and I have been working with a lot of investors lately. 

Seeing the numbers from a lending perspective has me excited to start investing myself. It is my #1 goal this year to purchase my first property. Looking forward to more great information from this community and learning as I continue towards my own financial freedom through real estate!