All Forum Posts by: Brandon Beardt

 Hi Johnny,

I actually just moved up here to Santa Barbara from Los Angeles last July. Expensive city but beautiful nonetheless! When it comes to DSCR loans and the DSCR calculation, lenders will typically go off of the lower of the current rent OR what the appraiser deems is the market rent based on their 1007 report (rental comparable survey). Since the property is bringing in such a high rent amount (common with rent-by-room student housing), I'm sure the lender will take the 1007 market rents when calculating the DSCR. Just something to consider when looking to get qualified as it could affect your maximum leverage. Best of luck to you!

 Hi Rob,

I'd say do some research on lenders in the Network tab above. Look at different company reviews and testimonials that actually come from people here on Bigger Pockets to get a better idea of what to expect from them. Thankfully for you, there are a ton of brokers/lenders that can help you with DSCR, but not all of them are able to help you succeed and meet your goals. Best of luck to you!

 What's the reason for needing a different lender? You'll likely get a more valuable response by providing additional details.

 Hi James,

I've seen very few DSCR lenders offer loan amounts lower than $75K min. Some are out there, but at higher costs, & not sure how much longer they'll offer them. There's not a huge demand on the secondary market for loans less than $75K which is why most lenders have that minimum. Best of luck!

 Hi Hillary! Luckily for you, there are many investor friendly lenders here on the BP forums! You could also check some out in the Network tab above. Do the research, read reviews, and partner with a broker/lender that you trust and will help you succeed in your business. I'm sure you'll find one here. Wishing you the best of luck!

80% LTV on Cash-Out DSCR programs are out there, however, they are harder to find and tend to have a much higher costs than keeping leverage at around 70-75% LTV. From what I've found, different lenders have different requirements/guidelines when it comes to STRs. Some will require an actual operating history, while others will simply rely on AirDNA data. I suggest talking to a few different brokers/lenders to see what sort of options they have that can best suit your scenario and needs.

 Hi Bud,

You'll find plenty of DSCR lenders here in the forums that can help you out! You can also find some in the Network tab above. I suggest doing research on them, reading their reviews, and seeing what they have to offer. You'll want to partner with a broker/lender that you can trust, build a relationship with, and succeed with. Every lender's DSCR program is very similar across the board, however, most have different guidelines and higher/lower pricing adjustments based on the actual loan parameters. You'll have to determine what's best for you and your goals - best rate, highest leverage, turn times, fees, and everything in between. Seeing as you already have 30+ units, I'm sure you know what you're doing. But nonetheless, best of luck to you!

 Hi Wendy,

I'm not familiar with the Lakeland area so won't be able to help you out regarding area insights or closing attorneys. Regarding the DSCR loan, I would imagine the lender/broker you're working with would be able to give you more information regarding what their specific program entails (qualification metrics, loan terms, etc). The general gist is that if you have good FICO and the property is projected to cashflow, you're good to go. It's obviously more intricate than that, but you get the idea. There are a ton of forum posts that explain DSCR as well. Rates for DSCR between 7.5%-8% at 75% LTV are good. I see around the same depending on the different loan level pricing adjustments per lender. I would imagine 80% LTV for DSCR is much more expensive. Best of luck to you!

 Hi Nathan,

The DSCR program is utilized for more long term financing. Most if not all DSCR loans have some sort of prepayment penalty, usually 5 years that could be brought down to 2-3 with added cost. If your goal is to purchase the property, do some small renovations, and then refinance to get cash-out of the property within 6-12 months, you may be better off with a short term bridge loan. They are interest only and most don't have prepayment penalties. This way, you can easily refinance and get the cash out you qualify for after the reno is complete and the new lender's required title seasoning period ends. Hope this helps and best of luck!

 Hi Fernando,

I don't see why other lenders were requiring that you would need to occupy it as your primary residence, seems strange. I guess it would depend on the type of lender you are using and their guidelines/rules. If you were to take a cash-out refinance on the two investment properties that are free and clear, there would only would be a new lien/loan on those properties themselves.