All Forum Posts by: Cory Anderson

Hi @Cory Anderson, I'm based in Southern California, but I have started my out-of-state real estate journey in Indianapolis. Now, I have a portfolio of Short Term Rentals and Long Term Rentals.

I've also helped other investors with their DSCR loans and flip projects. Happy to share my experiences and chat with you more if you're interested.

Hi Jayson, 

those are my excact plans! i love for you to share your experience. please message me. 

@Cory Anderson From a leverage perspective, DSCR loans aren't as effective nowadays. Higher rates = higher payments = less cash flow = more difficult to get max leverage. They still serve their purpose. Realistically, that usually happens at a lower leverage or in markets where rents are higher relative to value.

"No Ratio DSCR" loans can be a strong alternative if getting a higher LTV is your goal. Rate is generally higher but the tradeoff makes sense for some.

@Cory Anderson

Hi Kenneth,

thanks for the info! my goal was to BRRRR system. this was great. thank you!

They are a great product for using the BRRRR system where you have forced the equity through the rehab. You will need at least 25% down or in the case of a BRRRR, equity after all work is done and a tenant with a lease is in the property. My first BRRRR was a purchase of $85,000 + $17,000 rehab. Appraised for $125,000 almost got every penny back during the refinance. It has to have a positive cash flow typically at 1.25, but that varies per lender. It can work with a straight out rental purchase as well.

Hey @Cory Anderson - I believe others have already answered what a DSCR loan is, if you need recommendations for local lenders in the NYC market give me a shout. I work with a lot of investors and have a good idea of the banks that can work well with what you're wanting to accomplish.

Hi Cory, a DSCR loan is one that uses the performance of the rental property (rental income vs mortgage payment) to qualify rather than personal income ratios. They do generally have a higher fees and rates than conventional, but they are great if you won't qualify for conventional or as you scale up in number of properties.

What state are you wanting to purchase in? I do DSCR loans..