All Forum Posts by: Brittany Minocchi

100% he needs to speak to other lenders....they all have different requirements. Seasoning periods vary and it's not all that uncommon to find a lender that will allow 90 days, even NO seasoning if he can document the value add to the property (invoices, receipts, before/after pics, etc). 

No portion of the housing is to be used for transient or hotel purposes at any point that an FHA loan applies to the property (whether in the first year of occupancy or not). The FHA defines transient as anything less than 30 days, and hotel purposes would be if occupants are provided things like maid service, laundry service, etc...

Quote from @Tim Flickinger:

There are 2 other duplex I want to buy in Ohio. Each 80k. Ok to do a loan with properties in different places? So 2 properties in WI for 70k each and 2 in Ohio for 80k each. 

$50k per property minimum on 2+ units in a blanket, so assuming 75% LTV (LTV will be dependent on a couple factors including FICO), you'd be good on both set of properties. This would be two separate blankets, though - not all 4 together since they're in different states.

Hey @Beau Watson!

Cash outs are doable via conventional financing (if you qualify) or you could go the nonQM route. This would be something like a debt service loan or a no-ratio loan. If you want to close in an LLC, you'd need to go nonQM.

You could do a HELOC or a HELOAN, but they can be difficult to come by for investments in general, especially multifamily. HELOCs are harder to find than HELOANs.

Some of the nonQM loans don't even consider your employment, income or DTI - they look strictly at the assets. Your W2 income would be irrelevant in this case, but your FICO will be a determining factor in your approval in general, as well as how much equity you can pull out. Lower FICO = lower LTV. It sounds like you've got enough equity to work with looking at all properties combined, you'd just need to make sure that each property hits the lender's required minimum loan amount (it sounds like you'd be okay, just mentioning for future reference).

Happy to connect if I missed anything or you have additional questions! 

Quote from @Hector Lewis:

@Brittany Minocchi 

Conventional or nonQM? If nonQM, most lenders have a $100k loan amount minimum. I've seen some that go down to $55k-$75k depending on the scenario. Conventional should be a bit easier to finance with a low (sub $100k) loan amount.

Thank you for your response.  This is a conventional loan where I was going to put down 25% but they stated they would not finance since it was under $100k.

Ah, gotcha. Different banks have different requirements. Lower loan amounts are common here in the Midwest…~$50k loans aren’t unheard of, just depends on the whole scenario on whether or not it makes sense to do

Are you going the conventional route, or with a DSCR loan? Either way, happy to help. Feel free to reach out to discuss.

Quote from @Tim Flickinger:

70k purchase price. I do have another duplex in Milwaukee

You MIGHT be okay to do a blanket loan like you mentioned depending on the whole scenario (LTV, FICO, etc). Doing them individually with a DSCR would be tough with that low of a loan amount.

$70k purchase price or loan amount? Do you have other investment properties? 

Conventional or nonQM? If nonQM, most lenders have a $100k loan amount minimum. I've seen some that go down to $55k-$75k depending on the scenario. Conventional should be a bit easier to finance with a low (sub $100k) loan amount. 

Quote from @Christofer Smith:

I've been looking at a lot of smaller towns around Cleveland, Ohio and have noticed there are a lot of seemingly decent cash flow properties, but more around the 1.5-1.8% rate. It doesn't seem to be much in the way of appreciation over time, but would these be worth checking out for the beginning investor?

I invest in Canton, about 45 mins south of Cleveland. Depending on the specific area, you’re correct in that cash flow is more likely than appreciation. That’s true in our neighborhoods anyway, but we favor cash flow so it works out fine. The cost of entry is lower.