All Forum Posts by: Andrew Garcia

 @Shadman Uddin, got it. In that case, your lending options are basically the same. If you are going the conventional, VA, or FHA route, as long as you do not sell the property within 6 months, there are no issues.

Rates will be in the 4s to 6s depending on a few factors. Max lending is determined by a few factors as well but anywhere from 0% down to 25% down. By security, do you mean security instruments? If so, there will be a mortgage note recorded against the property in a first-lien position.

If you are getting alternative lending, that is where some issues arise. If you are going DSCR, most have pre-payment penalties so you would have to buy it out or shorten the period to below 3 years.

The biggest thing to look out for is a pre-payment penalty. Avoid that and you should be good.

Regarding STRs, conventional financing is always an option. However, if you cannot go this route, STR loans might be your best bet.

For STR loans, typically they are similar to DSCR loans in that you get qualified based on the income generated by the property, not your personal income.

If you would like a referral to a lender that can give you more concrete rates and terms for any of the loans mentioned, please let me know.

Hi @Shadman Uddin, by shorter-term lending options do you mean for short-term rentals or looking to get a loan when you intend to sell the property in the next 3 years?

Answering that will allow myself and the others on this forum to properly respond.

Either way, you have options.

Hi @Ryan Manring, I would contact a local investor-friendly agent that specializes in STRs.

They would be the best resource to answer those three questions.

Tools like AirDNA can help but they are tools at the end of the day.

They have flaws and do not have intimate local market knowledge like an STR-focused agent.

Hope this helps! Let me know if I can be of any assistance.

Hi @Mason Brown, welcome to the community!

You are definitely in the right place!

Check out the podcasts, forums, and books. 

Remember, you do not have to know everything before jumping in. Just make sure that you have a knowledgable team around you.

I am excited to see where you go! Let me know if I can ever be of assistance.

Hi @Shankar Baskar, welcome to the community!

Cincinnati is a great city to invest in.

You should definitely start building your team now so you can pull the trigger when you are ready.

If you would like a referral to an investor-friendly agent or lender, please let me know.

Hi @Christopher Murphy, I would be happy to refer you to a great lender licensed in TX.

Feel free to reach out to exchange information.

Hi @Will Kurtz, welcome to REI!

There are so many great people in this community.

You seem very ambitious so I have no doubt that you will be successful in your future endeavors.

I am excited to see your progress!

Hi @Alex Bill, theoretically, it should still allow you to cash flow if the deal is solid.

The biggest factors are how much you have to pay in rent to the Islamic bank and how much you are getting in rent from the tenants of the property.

Without estimated numbers, no one here can tell you whether it will or not.

Hope this helps! Let me know if I can be of any assistance.

Hi @Kevin Brennan, house hacking is a great way to get started in REI.

It takes a very low initial investment (3.5% down) and can generally save you a thousand dollars or more per month in living expenses.

Depending on a few factors, you can likely get a rate in the low to mid 4s.

You could keep your current residence as an investment property or sell it to reinvest elsewhere.

Hope this helps! Let me know if I can be of any assistance.

Hi @Alan L Donald, most mortgages have taxes and insurance escrowed so it would continue to be included in the mortgage payment.

The new policy in your name would likely raise a red flag, however.

I am not sure how the sub2 crowd get around that.