All Forum Posts by: Erik Estrada

 Hi Ty, 

DSCR loans are generally best for investors that own several rentals and their DTI won't allow for conventional financing or self-employed business owners that do not show much personal income on their tax returns.

If you are new I'd highly suggest you look into house hacking. You will be able to put the least amount down, gain the landlord experience, and get better rates/fees. 

I think you are missing the most critical component of the BRRRR, which is the way you will payoff/pay down the higher loan. Rates make it difficult to cashflow, and appraisal values in many markets have been decreasing, making it very hard to incorporate this strategy. I am seeing more people opt for (riding the wave), keeping their LTVs low (getting little to no cash out).

You are also missing on the tax benefits to owning rental properties. If you are a self-employed/business owner you will get many tax deductions by holding rentals. Additionally you get long term appreciation and loan pay down through rental income. I would say this is a solid market for investors to find long-term performing assets, instead of the quick churn the BRRRR pushes.

Yes if you refinance and increase your loan amount you will pay more in closing costs and increase your monthly. However if that additional cash out will help you increase your monthly rent, then maybe it could make sense. Cash is king, especially in a market where consumer debt is rising and far fewer people are able to afford homes since their incomes are not keeping up with inflation. 

 Clean deals, with least amount of risk. Higher cash reserves, credit and experience always help as well 

 Wow that's crazy, 

You had to call the lender several times for your business in a market like this? I would recommend working with a different lender/broker that is more responsive and can handle your request. 

Have you looked into asset based lending options, such as a DSCR / Private Money Ground -Up Construction Loans?

 You will definitely need an exception if the home is under 600 sqft. If it's over 600 sqft, then you should be ok. 

The harder part is the lower property value. Is this property already completed/rehabbed? DSCR lenders only finance turnkey rentals

Yes you can do a $55k min loan amount on a DSCR. It will be pretty expensive though

What's the price range?

 That's the problem. 

If you are ignoring the agent and not telling him it has already been rented, in his or her's head she is thinking, you have not gotten her email or it went to spam. 

There is no use in you ignoring the agent. That's just an unprofessional way to conduct business. She is obviously trying to help you secure a tenant, although not qualified to your standards, she is doing her job. 

Instead of ignoring her, you should kindly respond to her email and say it has been rented already. You never know. Maybe she might bring you another tenant for another future property that you may need a tenant for. Treat others with respect, and people will respect you back. 

You can do an STR DSCR loan with 15% Down.

I have never heard of a piggy back loan with an investment property purchase. I have you closed on something like this?