All Forum Posts by: Alex Zokan

@Andrew Postell Thanks for the very detailed breakdown. I'm curious how is income factored into this type of loan? Will they use the income from the property if its rented? If so is there a seasoning period on this? Since the property won't be owned for long that income will not show up on a tax return yet. 

There are products out in the market now that allow you to cash out up to 75% of current value after 90 days of ownership, no personal income or tax returns needed. Conventional is usually 6 months seasoning some banks have overlays that require a year. 

Hi Matt, 

Depending on the value of the property & your credit scores, there's financing available up to 80% LTV for a rate & term refinance or 75% LTV if you're pulling out cash. No personal income verification, lending is based only on the income of the property which most rentals have no problem covering. Property can be held in the name of an entity. Rates Start at 6%, most can stay under 7% as well. Fully amortizing. If that's something that fits into what you're looking for send me a PM & I can look over what you have.

Depending on the value of the property & your credit score, there are lenders that will allow for you to keep the property (or transfer it at closing) in an LLC. Do you know about how much the property would appraise at?

What is the current NOI of the property?

Here's a very basic breakdown of the numbers

- Loan Balance must be 65% LTV or less

- If being rented, Property must meet a Debt Service Coverage Ratio of 1.24+. 

We typically factor that 30% of the income will go to expenses, with a loan balance 80% of the purchase, rental income coming in $975+ it meets our DSCR we need to qualify the project.

It still depends on the property / location as well, but that's what we typically look at upfront. 

We use a local broker / property manager for most of our rentals, 

Erik Parks
Island Real Estate & Property Management 

If you want his contact info just send me a PM 

Just be careful who the person is & where the money is going to. There are a lot of people out there that take upfront deposits & then run away. 

Hello to All, 

Good to see some locals on here from the Pasco County area! Is there anyone here wholesaling in the area? We just had an investor purchase a chunk of our portfolio & we are in the market to buy another 10 properties in the next few months.

At least a 2+Bed, 1+ Bath, 950+ Sq Ft, Block, Outside of an A or AE flood zone, No sinkhole homes unless engineering report is available.

Depending on the Rehab, we typically buy anywhere from 25-35K

<15 Miles off U.S 19 in Holiday, Port Richey & New Port Richey (would consider Hudson or Springhill)

If you have properties that fit our criteria or know of anyone looking to sell, let me know!

It all depends on how conforming it is to the area, if it is one of the only wood framed, 1000 Sq Ft houses in the area, then I would definitely think twice about buying it. Wood frame house typically sell lower than a block house, so i'd see what comps were used in the appraisal. If all the comps are Block houses, I would look for compensating factors to account for the subject property being wood frame. 

Depending on the area, it has been increasingly tough to find houses in safe areas, with good schools under $100k, so that is definitely a plus. If the school district is top rated, then you should always have a healthy stable of renters. 

Judging from the numbers you gave, this deal would fit in our lending criteria if it would rent for $975+, if you are looking for a second opinion on HMF, i'd be happy to give the property a look & see if we could offer you financing.