All Forum Posts by: Dane Fitch
Dane Fitch has started 9 posts and replied 32 times.
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Post: gotchas in Oregon coast for short-term rentals

- Investor
- Gresham, OR
- Posts 39
- Votes 21
I own 7 vacation rentals between Lincoln City and Rockaway Beach. You do need to understand what is drawing your crowd to the specific city and yes it's very seasonal so expect Dec - February to be lower than your mortgage payments, but summers are awesome. Financing is very challenging. The easy way is to buy it as a 2nd home if your income allows, but you have to qualify without using any rental income. Otherwise, you need a full 2 years of tax returns showing income for any bank to get really comfortable lending on STR's. Even low doc loans are only wanting to lend to month to month rentals with leases. What I like to use is lower interest private loan that's good for 2 or 3 years and then refinance into a longer term product once I have the tax return history. We do very well in Pacific city and Rockaway with a few of our houses going over the $100K in gross income.
Shoot me a message if you want to know a little more on the financing strategy and/or what cities I target on the coast. Also we use Vacasa to manage the properties and have really liked using them.
Good luck, STR's are an awesome rental strategy that's fun for the family as well as the pocket book.
Post: WA state lenders that do 75% LTV Refinances?

- Investor
- Gresham, OR
- Posts 39
- Votes 21
If it's cash out no, if it's rate and term, you should be able to get up to 80% with some lenders.
Post: Multi Family Property

- Investor
- Gresham, OR
- Posts 39
- Votes 21
Tim, These smaller multi family deals (20 units or less) aren't always valued based on cap rates. As Andrew stated value will also be based off comparable properties. A commercial appraiser is likely to use both methods and average them. If you are trying to figure out a "fair" price, I think you also have to consider not just the money, but the time you'll take in taking care of the deferred maintenance as well as the time it will take to raise rents to market especially if it's in a state that only allows you to raise rent by a small percentage. Also is the convenience factor, if you are paying cash or have 'easy' financing that's more than a full bank loan, the seller should factor that into the price especially if you can't get conventional financing due to their poor book keeping or management. This is a great question because there is such complexity to the answer. It's not just cap rate, comps, repairs, seller motivation alone that go into factoring the price, but all of them, and, to what extent is the weight of each of those categories...again depends on the situation.
Be prepared though if this is one of your first MF deals. Appraisals are often $1,500-$3,000. Also make sure you get an environmental report, even a desktop one can save you hundreds of thousands of dollars down the road. Financing on these whether again short (private money) or long (institutional money) will be more expensive and require a larger down payment both because the nature of these deals are riskier than SFR's but also, as you stated, this is your first in this asset class.
Glad to see you moving into that natural progression from SFR to multifamily.
Post: Single Family Portfolio Loan 1MM+

- Investor
- Gresham, OR
- Posts 39
- Votes 21
Corevest would have the best product if you are going non QM. Their portfolio loan I believe is a 10 year product. Hard to sell off inventory during that time, but if you are set on keeping them, I think their product is in the high 4's like the rate you have now.
Post: Need help navigating loan options

- Investor
- Gresham, OR
- Posts 39
- Votes 21
Hey Brandon, There are plenty of Hard money lenders that will do a loan with no prepayment penalty. What state are you in? Whats the purchase price, rehab estimate, and after repair value estimate? Is this your first property you have purchase for investment intent? If not, how many have you purchased in the last 3 years. Those are a few basic questions that a hard money lender will want to know to see if your property is financeable or not. Hit me up with a message of your contact info and I can let you know what to expect.
Post: Looking for mortgage brokers in Oregon

- Investor
- Gresham, OR
- Posts 39
- Votes 21
@Jimmy Lieu are you looking for hard money for a rehab project, or a conventional loan for straight rental?
Post: Can't find any unfrozen lenders for 2 property deal.

- Investor
- Gresham, OR
- Posts 39
- Votes 21
@Brad Stafford is it 79K for both or 79K a piece. if it's the former, you may even have a hard time getting a loan on both as most lenders want a loan to be at least 79K. I think the only likely option is to do the loans separately rather than together with a commercial loan.
Post: Can't find any unfrozen lenders for 2 property deal.

- Investor
- Gresham, OR
- Posts 39
- Votes 21
Hey @Brad Stafford. I've heard Civic is one of the only non QM lenders with a rental product. It's obviously not ideal. 1.1 dscr and likely around 7% with a 25-30% down payment. One thing Lendinghome has is a 24 month no prepayment penalty which can give you a lot of options including renting through the crisis. The local lenders without Funds have been hit the hardest as they have no place to sell their loans they originate. From an investor perspective, I'd want an incredible deal this month and next month. Something that could take a 20% hit in home prices over the next year. No one has a playbook here, so it's anyone's guess as to how long it takes to get on the other side. Good luck
Post: Current state of real estate lending - Covid19 Recession

- Investor
- Gresham, OR
- Posts 39
- Votes 21
@Joseph Weisenbloom the bond markets where many of these hard money loans are sold have completely dried up. People are pulling out cash and waiting on the sidelines for opportunity. Because of this, a ton of hard money lenders had to close up shop in 24 hours. They just don't have the ability to recapitalize. The rest of the lenders that are alive are anticipating defaults in the next few months as houses become more difficult to sell hence the lower leverage and tightening of criteria of rehab and FICO score.
What people need to understand is that this asset class is not how hard money used to be where the lender often made our better if they did indeed foreclose on the property. Now, Lenders have to keep their default rates low to keep their securitizations intact.