All Forum Posts by: Evan Holly

@Adam Windham Thanks for your response. I know now the DSCR is what's making it so tough. I'd try 2nd home, but I already own a primary in town. There's definitely value add, so that's an option as well.

@Josh Surver messaging you now!

@John O'Leary Thanks John!  Ok, that sounds like a good way to make it happen.  Simplifies it a bit in my head for sure. 

@Christian Ehlers thank you!  I know of the Morby method and love Pace but sometimes question the reality of making his methods happen.  From what I've seen from his example of the Morby Method, he doesn't let the lender know.  That part feels a bit strange to me, and I'm also not sure how to navigate a close in this case.  I do appreciate you throwing that out there though, builds some confidence in this method for sure. 

I have an opportunity for a solid STR in the Catskills of New York, but it has a few hurdles. 1. It's rural 2. It would be an STR 3. The owner is willing to finance, but wants a 50% down payment (75k).

I've asked around, but so far have had most people say it's too rural or they won't allow a lien against the property behind their own.  Am I searching for a unicorn lender?

To be clear, I'm trying to put no money down, having the lender fund 50% and the owner "fund" 50%.  It's not because I don't have the money for a down payment, I'd just rather save it if possible for another deal. 

I would love to hear of any similar personal experiences, advice, or lenders out there who might be interested in this deal.

Thanks BP!

Quote from @Jayson Cain:

If you have a history on those STRs and you do a DSCR Loan, you can use the STR income to calculate the DSCR calculation. This will let you get the most cash out possible. You won't need to get a long term lease.

Thanks Jayson!  I'm not sure if I'm hearing this right. Are you saying I could get a loan based on the income (as a business), rather than off the appraised value of the home?  I know you can do that in multifamily, but did not realize it could be done on a SFH.  This could be a game changer if it's true.

Thank you all for the advice!  I'm aware of the DSCR, and have used it before.  I just have an opportunity to get up to 90% LTV, so I'm trying to figure out a way to go that route.  That said, if I can get lending to based on the STR income (not the house), that would be the most solid route! I wasn't aware of that option, so I guess I'll be reaching out to some folks.  Thank you again

I have a few successful strs in Georgia. I am looking to refinance a couple of them, however my lender requires 2 years of income shown, and I don't have that for these particular houses. They will, however, accept a long term lease. I read somewhere that it might be possible to long term lease them to my LLC, since the LLC is for the STR business, (essentially rental arbitrage myself). Anyone have thoughts on this? I'd love to hear!

Add a bedroom, but lose a garage... I'm in the process of a BRRRR and am hoping to get a high appraisal. I'd like to add a bedroom and 400 square feet, as it will be an STR and a garage won't be needed much. All the comps have garages, so it's hard for me to square how an appraiser would view this. Can anyone share their personal experience with this? Thank you!

Thank you all for the input!  Ended up countering the 90k, no inspection.  Got it to 92.5k with a quick close.  Very happy about it.  Now just hoping it all goes through!  Feels good to get 1 flip under my belt (almost).  Got paid to get some serious education.  Guess it's time to find another  :)