All Forum Posts by: Delwyn A.

Yes, it is possible to get more than four units with a DSCR (Debt Service Coverage Ratio) loan. In fact, DSCR loans are often used for financing commercial and multifamily properties with more than four units. The maximum number of units that can be financed with a DSCR loan will depend on a variety of factors, including the property's income and expenses, the borrower's creditworthiness and financial stability, and the lender's specific underwriting criteria. Generally, lenders will consider the property's cash flow and the borrower's ability to generate sufficient rental income to cover the mortgage payments when evaluating whether to approve a DSCR loan.

Consistently finding tenants for mid-term rentals requires a proactive approach and effective marketing strategies. One key strategy is to list the property on popular rental websites and social media platforms, and to target potential tenants through email marketing and targeted online advertising. Additionally, offering competitive pricing and incentives such as discounts for longer rental terms can also help to attract tenants. Building relationships with local hospitals, businesses, universities, and other organizations can also be a great way to generate leads and establish a steady stream of rental income. Consistency in communication and prompt attention to tenant needs and concerns can also help to ensure high tenant satisfaction and a positive reputation, which can lead to repeat business and referrals.

Subject to financing is a real estate financing strategy that allows buyers to take over the existing mortgage payments of a seller, without obtaining a new loan. While this approach can be an attractive option for buyers and sellers alike, there are also some potential downsides that should be considered before entering into a subject to financing agreement.

One major drawback of subject to financing is that the buyer assumes all of the risks associated with the existing mortgage. This means that if the seller defaults on the mortgage payments or falls behind on property taxes, the buyer may be held responsible for these obligations. In addition, the buyer may also be subject to other liens or encumbrances on the property that were not disclosed at the time of the sale.

Another potential downside of subject to financing is that it can be a complex and legally complicated process. Buyers and sellers will need to carefully review and understand the terms of the existing mortgage, as well as any legal documents or disclosures required by the transaction. In addition, it is important to work with a qualified real estate attorney or other professional to ensure that all legal requirements are met and that the transaction is conducted in accordance with applicable laws and regulations.

In conclusion, while subject to financing can be an attractive financing option for some buyers and sellers, it is important to carefully consider the potential risks and downsides before entering into this type of agreement. Buyers and sellers should work with qualified professionals and carefully review all legal documents and disclosures to ensure a successful and legally compliant transaction.

One major drawback of house hacking in the same unit as your tenant is the fact you two may not get along. It is vital for you to screen potential tenants as you would for any rental, but also make sure you two are compatible as well since you will be living together. It can be challenging to find tenants who are compatible with your living situation. For example, if you have young children, you may not want to rent to college students who party late into the night. Similarly, if you work from home, you may not want to rent to tenants who have loud, disruptive jobs or hobbies.

Finally, house hacking can be a time-consuming and demanding investment strategy, as it requires a great deal of management and upkeep. Investors who are not prepared to handle the responsibilities of being a landlord may find themselves overwhelmed and burnt out.

In conclusion, while house hacking can be a lucrative real estate investment strategy, it is important to carefully consider the potential downsides before making a commitment. Investors should be prepared to manage their finances carefully, screen tenants thoroughly, and dedicate significant time and energy to the management and upkeep of their properties.

Subject To financing is a type of real estate financing that involves purchasing a property "subject to" an existing mortgage. In other words, the buyer takes over the existing mortgage payments of the seller, without having to obtain a new loan. While this type of financing can be beneficial in some cases, it also has its pros and cons that buyers and sellers should be aware of before making a decision.

Pros of Subject To Financing:

1. * Lower Closing Costs: One of the biggest advantages of Subject To financing is that it can significantly reduce the closing costs involved in buying a property. Since there is no need to obtain a new loan, the buyer does not need to pay for origination fees, appraisal fees, or other closing costs associated with obtaining a new mortgage.
2. * Faster Closing: Subject To financing can also help buyers close on a property more quickly, as there is no need to wait for a new loan to be approved. This can be especially beneficial for buyers who need to move quickly due to job relocation, family changes, or other reasons.
3. * Seller Benefits: Subject To financing can also benefit sellers who may be facing financial difficulties or foreclosure. By selling their property subject to the existing mortgage, they can avoid foreclosure and preserve their credit rating.

Cons of Subject To Financing:

1. * Risk of Default: One of the biggest risks of Subject To financing is that the buyer may default on the existing mortgage, leaving the seller responsible for the outstanding debt. This can be particularly problematic if the buyer stops making payments and the property goes into foreclosure.
2. * No Control over Mortgage Terms: Another potential downside of Subject To financing is that the buyer has no control over the terms of the existing mortgage. This can include interest rates, payment schedules, and other conditions that may not be favorable to the buyer.
3. * Potential for Fraud: Finally, there is the potential for fraud with Subject To financing, particularly if the buyer is not honest about their financial situation or intentions. This can include misrepresenting their income or assets, or failing to make payments on the existing mortgage as agreed.

In conclusion, while Subject To financing can be a viable option for some buyers and sellers, it is important to carefully weigh the pros and cons before making a decision. Buyers should be aware of the risks involved, including the potential for default and lack of control over mortgage terms, while sellers should consider the benefits of avoiding foreclosure and preserving their credit rating. As with any real estate transaction, it is important to work with a knowledgeable and trustworthy professional who can guide you through the process and help ensure a successful outcome.