All Forum Posts by: Colleen A Levitt

You can always pay off or refinance the loan. The issue is cost. Most DSCR loans come with a prepayment penalty that is typically 5% for the first year, 4 points for the second, 3, 2, or 1 pts for each year. So the $108K loan will cost you 5 pts. or $5,400 to pay it off in the first 12 months.

You will also have to factor in the closing cost for the new loan.

You need to do a cost-benefit analysis to determine if it's worth it.

This is very helpful! We have a 3-2-1 paydown. A lot to think about. Definitely a chunk of change I don't want to pay, but having my cash back out to do another deal might be worth it...

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About 6 months ago we purchased a duplex using a DSCR loan. The original intention was to do a light cosmetic rehab and rent it out. We put 20% down at 8.25% on a property with a $136k purchase price. Loan is just over $108k. We could have rented it out for about $1600/mo. We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k. Can we DSCR out of this to get our money back out or will I need to sell it to get our $136k total investment out?

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All Forum Posts by: Colleen A Levitt

Colleen A Levitt has started 1 posts and replied 2 times.

Post: DSCR out of a DSCR?

Post: DSCR out of a DSCR?

Colleen A Levitt has started 1 posts and replied 2 times.

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Post: DSCR out of a DSCR?

Post: DSCR out of a DSCR?