All Forum Posts by: Jacob Schurer

Quote from @Kyle Allbright:

Quote from @Eli Kim:

Hey guys, 

So I currently have 3 properties and I want to purchase another one but the issue is I've maxed out DTI. What other methods should I use to acquire another property? I've been thinking DSCR but don't they typically have higher down payments and closing costs? I was also thinking of looking for seller finance deals. What are you guys thoughts for my best course of action?

We're in the exact same boat my friend. I'm currently getting under contract on a property for rent in Texas, our 4th, via DSCR.

Hoping it’ll be a successful move. 
P. S. I wouldn't worry about the higher dp because any investment property is going to require 20% down , like a DSCR

Hey Kyle,

What are/have you been using for your DP on these purchases via DSCR?  and if you're re-financing after rehab, can you do it via another DSCR?

I've been searching for threads/experience purchasing via DSCR (using HELOC as down payment + rehab) and then cash out-refi at 6mo & pay off HELOC...am I missing something?

Thanks @Craig Warner, DM sent!

Thank you Mike, they're also on the list as we are already members!

Hi BP Community

Looking for lenders / lending options to purchase a home as a live-in-flip.  This would be the second time I (my family) has done this, only this time I've been self-employed for <1 year now vs. previously I was a W2 employee.

Currently on the phone with local banks, ideally looking to use a 203k rehab + proceeds from selling our current primary.

Any/all recommendations are appreciated!

Putting more thought into this @Kevin Sobilo ...

KEEP Town home: we would have to use an FHA/low/no money loan for our next primary = high mortgage. The town home would cash flow ~$200 after expenses (and is near new/low risk of large capital costs). We're left with a higher primary mortgage and less cash to find 2nd investment property. I'd estimate 1-2 investments probable in 12-24 months.

SELL Town home: we could net up to $135k.  We're seeing inventory for another primary in the $200-250k range.  Deploy $50k DP with up to $30k Reno and we're still left with $55k for one or multiple investment properties immediately.  Rehabbing our primary seems like a good tactic to offset high(er) interest rates right now and can benefit from later down the road.  There are multi-families that I'm seeing will cash flow similarly ($200 after expenses) that are half the cost our town home was.

Let me know if you'd be up for reviewing some specific opportunities I've analyzed recently and am open to any other thoughts you have on financing options for either of these scenarios!

Thanks Kevin!

This is very helpful.

If we rented our home (and purchased a second home) we could likely purchase another investment properly in roughly 12-24 months after, but this would depend on how creative we'd get with financing.

Totally agree about having all eggs in one basket.  I was spoiled with my initial duplex and really had a great landlord experience.  I know that is not always the case.

Selling anything right now to have to buy another primary doesn't appeal given rates now vs. what we have, but to your point we might be able to do more with that cash vs. just leveraging equity & financing.

I'll run some numbers and happy to share with more data.

Hi all,

My wife & I sold our duplex in 2020 and used ~ $60k of that as a down payment on a town home for our growing family (purchased for $345k, 30yr @ 3.5% in 2022).  With 2 kids and a third in the near future, we're looking to move again in the next 2-3 years.

We have around $15k savings, $45k traditional IRA and $20k in other investments. We also have access to a $30k HELOC, fixed 8.5%.

The current mortgage is $1600 and exact units in our block are renting for $2600+/mo, but the property doesn't pass the 1% rule.

We want to start investing in RE again.  I know there are other financing options, but the question we cannot seem to avoid is whether or not to hold (and rent) or sell the town home.

It's tempting to leverage the current equity, move out and rent it - but from what I've read / calculated, it might not be the best return compared to other options.

Ideas on how we can get into another home (larger but cheaper) while also (re)starting our REI journey?

Thanks,