All Forum Posts by: Colin McMahon

 Hi Ben,

I do not have any feedback for you on the STR rental market in Kissimmee, but on the lending side, I would recommend getting a mortgage when you purchase the home. Rates are lower on purchases than refis and we can use a projected rental income to qualify rather than actuals. As stated with an STR it will take you a while to get the property up and running, so the rental income may not look great over the first few months. With the cash you have, I would put 40%-50% down to get yourself the best rate and put yourself in a position where even if you had to rent out the property on a year-long lease the rental income would still cover the mortgage payment.

 @Divya Sarin Are you still in the property search process? 

If so I'd be happy to provide some insight on financing in the U.S. I work for a direct lender and we provide financing in Indianapolis along with 35 other states so I can guide you through the nuances across various states. Please send me a DM if you'd like to connect! Financing is done remotely so no driving time necessary. 

@Alejandro Martinez we have done loans for several Canadian clients that purchased in the US. They did not need a US visa, US income, or US credit. I would be happy to go over some of the requirements for getting a mortgage in the US as an international investor. 

I will send you a DM

Hi Richard,

Since you just purchased the property with cash you can do what is called delayed financing. This will allow you to refinance within the typical cash-out seasoning period. On a 2-4 unit you should be able to get up to 70 LTV and still keep the DSCR over 1 to get a better rate.

As long as there is no pre-payment penalty you only pay the interest for as long as you have the loan. It is really important to make sure you fully understand the loan terms, pre-payment penalty, and points being charged when doing a hard money loan! 

Hi Chris, 

DSCR loans are a great way to acquire investment properties. We do DSCR loans that can be under a 1.

This means the projected rental income is below the projected mortgage payment. If you have enough assets for a roughly 25% down payment plus closing costs the loan will get done. The DSCR ratio will impact what type of rate you get. There are a lot of different ways to calculate the rental income portion of the ratio, so it is best to send your lender the property address you are interested in so they can do some calculations for you.

I will send you a DM with more details if you are interested. 

Hi Tianyi,

The best option would be to get a cash-out DSCR loan on the investment properties. It will be a closed-end mortgage and not a HELOC, but you will get a better rate and have more financing options. I'll send you a PM so we can connect further.

 Hi Shahrouz, 

Some lenders will do a 6 month seasoning on cash-out but they will not allow you to use the increased appraised value. Others will ask for invoices but you will only be able to increase the value by the cost of the rehab and you will not receive added value. I would recommend a no-ratio DSCR loan that you close 12 months after the date you purchased if you can wait.

Hey Inga, 

As long as the HELOC is not against the subject property (and there are no other liens) you can do what is considered delayed financing.

If there is a lien against the subject property most companies will have a 6-month cash-out seasoning requirement to complete a cash-out refinance, but to use an increased property value (above what you purchased it for) you will have to wait 12 months. 

You could do a rate and term refinance to pay the HELOC off rather than take cash out. The other option would be to get a mortgage on the next purchase and leave your HELOC drawn.

Hi Jake! 

I work for a direct lender specializing in DSCR loan programs for investors so I'd be happy to help. I'll send you a PM so we can connect and I can better understand your goals and details around your rental property.