All Forum Posts by: Faiz Kanash

 Lets say hypothetically it meets the 1.25 ratio with only 5% down. Would a lender consider the refinance still?

Hello!
Just a question to see if this is doable... Is it possible to refinance a hard money loan into a traditional/DSCR 30 year loan if I don't have that much equity in the property? Not a cash-out refinance, just a general refinance. For example, I buy a 4 unit using a hard money loan(Interest only 12 month) but only put 5% down on the property, and after finishing fixing it up I want to keep it for rental income. But, would I be able to get a traditional/DSCR loan on it if I only have 5% equity in the property, or would the lender require me to put down additional money onto the property?

Thanks!

Just a quick general question.. If you purchase a multifamily property, lets say 4 units, and use FHA loan for the lower down payment benefit but the entire building is occupied, what would happen? I understand that FHA does require the borrower to live in one of the units for at least 1 year, but in the case that the entire building is occupied by tenants, whether on lease or month to month, what would happen? Would the lender not approve the loan for said property, would the lender require the borrower to evict one of the tenants, or is there something else that might happen?

Thank you!

Just looking for what landlords typically do when they come across a new investment property. I'm new to the buy and hold game, I specialize more in fix n flips but will be tapping into rentals soon. Most, if not all, multi-family properties here are already occupied by tenants, usually on month to month from what I've seen. Do you typically keep the inherited tenants and offer them the opportunity to stay with a new lease that meets market rents? Or, do you not go through that hassle, have the seller evict before purchasing the property?

Was curious to see what most people did, and the reasons behind it as it'll help me better understand what I will do in the future. Thank you!

 Essentially both, yes! Either use it to purchase a primary residence, or purchase a multi-family property and live in one of the units while renting out the rest(preferably the second option). And yes, my deposits are primarily from my flipping business.

I'm just overall unsure whether or not I'd even qualify for FHA/conventional due to the fact that my income isn't monthly.

Hello all,
Just a general question. I primarily work with hard money lenders to satisfy my needs when it comes to my projects as a fix n flipper, however there is also benefit if I'm able to work with conventional loans, such as possibly getting FHA approval to buy a multi-family property.

The issue is, my income isn't consistent which I know is a problem. I don't receive monthly deposits, instead its just large deposits every 4-5 months or so. I know there's the option of getting loans based on bank statements, but even with this information is it possible to get a loan still? Or, am I gonna have to tough it out longer until I'm generating monthly income?

Thank you!

Hello!
Sorry if this is the wrong subforum to ask this...

Anyone have any DSCR lenders they could recommend? I'm not sure if this is possible, but do DSCR lenders loan up to 90% LTV or is every lender around the 70%-80% mark? I'm primarily a fix n flipper type of investor and come across of a lot of great multi family deals in my area. Only issue is that I don't wanna go deep into my pockets, like a 20% down payment jusstt yet. Most multifamily properties go for around the 700k mark around me, so dishing out a $140k down payment kinda slows down my flipping business. If 90% is unrealistic, then i'd still like a recommendation of a DSCR lender, in the case I come across a multifamily building I really like that i'm willing to go crazy on haha. Also, a lender that is able to do 5+ units as most multi family buildings I come across are usually 6 units.

Thanks!

Hello everyone!

I'm looking to learn more about ground up construction and residential development, doing anything between single family to duplex to apartments. Nothing commercial really, or anything major like a 10+ unit building. I'm a current house flipper and i've found great success in what i've accomplished so far, to the point im able to take on multiple projects at once. I do see a high demand for new multi family buildings in the areas I work in, and want to eventually tap into it(I work in the suburbs, not chicago itself.) I was wondering if anyone knew whats a good way to get started in learning? Any books, videos, articles I'm able to learn from? Thank you!

Hopefully someone has some sort of experience with this or can give me some advice.

Theres a property I was looking at that I would love for a fix n flip project, but before placing an offer I found out the front yard is clipped into the floodzone, and the home itself will require flood insurance because of that small clip of zone A. I tend to avoid any houses that require flood insurance, just too much of a hassle to try and sell. However, I noticed that its only the front yard, and a very small amount of it.. Do you think its possible to have FEMA reassess this and remove the flood insurance requirement? Also, does anyone know how much all that usually costs to try and appeal? Or, do you think that they won't do anything and its not worth appealing? This is a hard pass for me if it sticks to the flood zone

Screenshot of the FEMA map---

https://i.gyazo.com/a5aacd09abdfc78ef397bdda6a2baec2.png

Sorry if this isn't the correct sub to post in.

I'm a house flipper, I primarily do fix n flips and recently got an offer from my hard money lender where they want to fund me up 90% of the cost for multi family properties. I built a pretty solid relationship with them so I suppose thats why they're offering so high for me. However, this is simply just a fix n flip loan, not a DSCR loan. So, it'd be a 12 month of interest only payments before full principle is due.

So, my strategy is the following.. Similar to BRRR I believe. Use the hard money fix n flip loan to acquire the property, do necessary repairs(If any), and just refinance the property into a conventional mortgage. However, I wasn't sure if its difficult to refinance a fix n flip loan into a 20 or 30 year loan. The last thing I'd want is to be unable to refinance into a traditional mortgage, then i'd be stuck with a rather massive bill to pay at month 12 that'd i'd be unable to actually pay haha. I'd probably wanna cash out refinance, and only pull out the 10% I put into the building, but thats really it. Also, any specific lenders I should try to focus on? I've heard a lot about working with local banks.

Does my strategy make sense? Or is it unrealistic? Thanks!