All Forum Posts by: David Garcia

@David Garcia

Owner occupied versus not is going to be the biggest variable as everyone else pointed out. If you are not going to occupy the property, the question then becomes do you go with a conforming loan or DSCR. If you can qualify conventionally, there is no reason to go DSCR unless vesting in a LLC at close is worth a higher rate to you. My guess is that if you are asking about using FHA or DSCR, you are likely not in an ideal position to use a DSCR loan yet.

I would recommend that you get in touch with a local realtor and explain your goals to them. Purchasing a multifamily property in which you intend to live in is likely going to be a different set of criteria versus one that is purely intended for cash flow. If you are in the greater Tampa area, I am sure @Josh Green would be glad to help advise.

Best of luck!

David,

Just FYI insurance is also more expensive if you are NOT living in the property.  You'll need a dwelling fire policy, ideally what they call DP3 as this is most comprehensive coverage, assuming you are NOT living in property.

@David Garcia

Owner occupied versus not is going to be the biggest variable as everyone else pointed out. If you are not going to occupy the property, the question then becomes do you go with a conforming loan or DSCR. If you can qualify conventionally, there is no reason to go DSCR unless vesting in a LLC at close is worth a higher rate to you. My guess is that if you are asking about using FHA or DSCR, you are likely not in an ideal position to use a DSCR loan yet.

I would recommend that you get in touch with a local realtor and explain your goals to them. Purchasing a multifamily property in which you intend to live in is likely going to be a different set of criteria versus one that is purely intended for cash flow. If you are in the greater Tampa area, I am sure @Josh Green would be glad to help advise.

Best of luck!

DSCR doesn't look at your income/tax returns and is much easier qualification. You can also improve your risk profile by borrowing through an LLC or with partners as well. Depending on how long you plan to hold (if long term you can add some prepayment penalties), DSCR rates should be pretty close to the FHA option. Plenty of lender resources here on BiggerPockets for both lending type

@Robin Simon - My goal is long term hold and if the DSCR rates are close to FHA that may be the way to go. Thanks for the input

FHA works well for a house hack, if you want to live in one of the units and rent the others. It gives you a great low down payment option but it does rely on your personal income and debts.

DSCR works better if you don't want to use your personal income and debts, but instead go off the performance of the property to pay for itself. You'll need a higher down payment for this loan

.thanks for the info this does help. 

Good Afternoon everyone. I was wondering if anyone has had any luck recently accessing equity they may have in their properties. I have two investment properties, one with about $100k of equity based off an appraisal we just did, and another with about $200k in equity. I am trying to access the equity in either, or both, to grow my portfolio. I also have my primary which has around $100k but we are almost done with a pool addition and then going to get it appraised to get PMI taken off. We figured we may as well wait for the pool to be completed for the extra cushion because I've seen that appraisers are being extremely conservative right now. We'll get it appraised and then that can be an option in about 2-3 months when the pool is done.

I can't find anyone that is doing HELOC's on investment properties. I did find one but they'll only do 70% LTV and they use a software to appraise the homes which is coming in fairly low. I don't mind paying the fees and such, but would like a little higher of an amount so that I can do more with it and make it worth it.

I don't want to cash our refi due to obvious reasons and having low interest rates currently. I was actually in the process back when it was around 6% on the appraised property mentioned above, but the appraisal came back a little lower than what we were expecting and after fees, points, etc. it again wasn't really worth it. 

I'm starting to wonder if that is just one of the struggles nowadays that everyone is going through, if there are other lenders that are offering some options, or a creative solution I'm not even aware of.  Trying to raise private capital as well but regardless I'd love to access all the equity if possible anyways. 

Thanks in advance! 

@David Garcia Fyi, I recently applied for a Heloc with Figure and they said they are currently not offering helocs as an option in my area(Tampa)>

 Let me tell you how much I agree with Kerry on this one lol. Figure is super good! give them a shot.