All Forum Posts by: Cody L.

Okay, even as a seasoned and active investor (~2,500 doors bought without partners), I don't know what you mean by a "DSCR lender". Every agency and local bank I go with as various caps on the proceeds. It's normally the lesser of some LTV (say, 75%) or the DSCR (normally they want to see at least ~1.2x).

From my perspective, all lenders have been DSCR lenders in that the property has to have a minimum DSCR for their proceeds.

So when someone says they want a "DSCR lender" what are they really asking for?

(This is like when someone asks me if we allow 'corporate rentals'.  Took me a while to realize that's just code for 'can we list your rental on airbnb?')

I have one property in Montrose (area of Houston) I just put under contract to sell to someone.  They put down 10%.  I have another property just outside the 610 loop (to the SE).  They are not under contract but our LOIs are at 10% down.

But with a bank? Nope. I used to do 20% down with my local banks, but that slipped to 25% down. Now you're lucky to get them to finance at 70%. My last big deal (I'm a bit worried to say the address as I don't want to come off as promoting) I was at 60% with my bank! And that was LTC. The LTV was closer to 50% (since my "C" was so much less than the "V" -- sounds dirty I know)

It can work. We have about 50 units leased to people who do STR with them. But like others said, it's not easy and is more a job than investing. The only way I've seen it work is at scale. i.e. people that own all the units in a building (or control all the units in a building). Or have at least 10 units in a small area. Having a small handful of units spread out is going to be a nightmare.

 @Kevin Wood This yours?

Pretty easy in multifamily in Houston.  All day long.  And in good areas.  I just bought a 16 unit in a nice area of Houston.  Paid $82k/door.  Avg rents are $900/month. 

And FYI, every wholesaler in Houston has been pitching that 9555 Crofton deal.

Or maybe I'm just grumpy since 1/2 my inbox is filled with wholesalers saying they want to buy one of my properties (read:  put it under contract, then try to sell it).  Or they have a property to sell (read:  They will put the property under contract if I say I want to buy it)

I love how all posts for sale are not by the owner or the listing agent.  And all the posts from buyers are not buyers, but people that 'have' buyers. 

Sometimes I feel that no one on this site is a multifamily owner/operator. 

 Thanks.  I don't partner on deals but I wish you the best!  If you end up closing, shoot me a note.  I own quite a few large multifamily properties in Houston. 

 Where is the 20 unit (you can message me if you're not wanting to share the address publicly) ?  I'm always looking to meet new buyers in Houston.