All Forum Posts by: David A Lisowski

@Paul O'Connor

Get other flood insurance quotes.

Borrow less until the payments are reduced enough to get back to positive cash-flow or buy a lower interest rate or combination of both.

Raise the rents.

A different lender won't get you out of flood insurance. The flood certificate determines that.

@Curt Smith

Yes, you can do DSCR loans or commercial loans. Correct that they will have different requirements than Fannie/Freddie loans. And correct, you may not run into limits on number of financed properties.

That's also a completely different strategy and negotiation on the purchase, financing, etc.

BTW, Fannie/Freddie is basically a DSCR loan at 1.33 DSCR requirement (i.e. 75% of rental schedule can be used to offset the property expenses).

Most DSCRs require between 1.25 and 1.5 DSCR depending on your profile and landlord experience.

@Krystal Marquez

HELOCs are usually variable interest rates, and often have different loan calculations than a standard 30-year.

Your "second" mortgage would be considered a cash-out refinance, and I'm fairly certain, is in first lien position.

You just need a lot of cash.

You can only have 10 properties financed by Fannie/Freddie loans.

If you think you'll get there by saving, I hate to inform you, but that's not happening.

Even saving $2,000 per month, you won't have 10 properties-worth of down payments and closing costs for a very long time.

You will have to start snowballing your investments and a combination of HELOCs and refinances in order to grow assets to pay off debts and acquire more properties.

So your "friend" with 5 other properties on the street is willing to basically give you a property that generates cash flow each month...?

Also, more details will give us all a better idea of the situation, the property, etc.

Right now, I'd be suspicious as hell. But I don't know your friend or your history with this friend... maybe, he or she is just trying to be generous, knowing your son needs a place to stay...?

@Sam Domach

Borrow enough to cover the carrying costs and payments due on the down payment loan until you can refi with either appreciation, or some rehab and re-assessed value, or a combination of both.

There are other methods, and this is an over-simplification. But it might steer you in the right direction. There are folks with more experience than me with things like this

HELOC on an investment would be pretty high risk for the lender.

You will likely be restricted to 80% CLTV (combined loan-to-value ratio), probably need lots of cash reserves (i.e. 6 months per property), excellent credit score, and other qualifications.

You also might be limited to # of properties or other things.

I saw a different thread said Space Coast Credit Union was able to do a HELOC on investment in FL.

I don't know about that and I'm not necessarily vouching for that either.

Good luck

@Jonathan Pavkov

Awesome! I've never even been to the area so it's more just an exercise in thought.

Are you boots-on-the-ground in the area?

@Sandra Morrison

Awesome. Let me take a look at some of the properties and areas, and I'll send you some starter questions!

So I've been looking at a lot of properties in the Covington, KY market. It is just south of Cincinnati, OH.

I know general inquiry posts aren't the most effective, but I'm curious if anyone has any insights into that market or any experience in the Cincinnati or Convington areas.

At this point, I'm fine with running numbers on deals to get some practice, and I understand that finding a "deal" on the MLS is probably not the best strategy. However, if my practice will not yield any tangible benefits, I'll turn my search to a different market.

It was more or less that this market appeared to be within the under $150k price-point. Just something I have been considering based on my current capital available.