All Forum Posts by: Freddy Hernandez

@Gage Edwards Thank you very much for the info. I truly appreciate it. I'd love to reach out personal and hopefully connect if that works with you.

Hello everyone!

I am about to finish the rehab and renting steps of a 5 unit property in Chicago, but the lender I was planning on using is currently putting loan origination on hold due to covid. I am looking around and the rates I did see seemed a bit high (6%+).

I am wondering if there are lenders out there still doing long term, cash-out refis during these times?

Below are some details on the deal.

CURRENT DEAL:- currently rehabbing 5 unit residential building- should be ready to cash out in late July- ARV should be around $650,000 - $700,000- looking to cash out 70%-75% LTV for a long term loan

PERSONAL FINANCES:- 730-750 credit score- 4 current properties (including the one above) + traditional W2 job - 6+ months reserves for all properties (mortgages) in liquid assets- DTI currently at 30% (using 75% of rental income)

Thank you all in advance!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $71,000
Cash invested: $74,000

2 unit property with solid cashflow and equity in up-and-coming neighborhood

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $154,000
Cash invested: $60,000

3 unit multi-family with solid cashflow and equity

@Andrew Postell I appreciate the help here! They use 75% of rental income on all properties in order to cover repairs/vacancies/etc. Is this typical?

I will definitely ask for details about products that do not look at DTI. Thank you.

Hey Everyone!

I have a question regarding DTI when investing full time. I am a few deals away from matching the salary at my job with real estate cash flow. Getting to this amount of cashflow was my goal to then quit my traditional job and focus on real estate investing full time. However, the lenders/credit unions that I have built rapport with the last few years require 43%-47% DTI to get through underwriting. With that said, my DTI would be in the mid 50s when I reach this point.

Any pointers out there besides refinancing current loans or increasing rents to get under the required DTI?

Thanks in advance!

@Sathish Sekar

Great information. Yes $33k can go quickly especially if I can’t rehab and refi all while not receiving rent. I am going to ask my attorneys a few more questions before I agree to move forward. Thank you!

@Angie Shires

From my understanding they are on a month to month agreement, but I will confirm ASAP and reply.

@Crystal Smith

Great info! Thank you very much! I plan on managing the property so I’ll look into lawyers to support me here.

@John Teachout

To my knowledge they are not paying rent at the moment. So if they’re under contract and paying, I couldn’t evict?