All Forum Posts by: Josh Kesselman

Depends on the lender.  Some who work with newbies may be willing to discuss options with you.  The question is really how to show you prequalify as a borrower.  That is going to largely depend on proof of your current liquidity and knowing your credit score (and other things like whether you're affiliated with the mafia or something).

Assuming everything is under one entity, it should be possible for the treasury department at your bank to set up subaccounts for you if necessary.

Just on a practical level the first place to start is to have some properties you are interested in.  Then you can have a meaningful discussion about loan structuring with a lender.  Treat it like a business and decide whether as a student you would prefer to meet in person or are okay with self-study and remote contact.  For example, I lend to first-timers, and it takes a lot of patience for everyone to make it through the educational process.  Certain people would rather have written explanations and others would rather ask a lot of questions in real time.  Ultimately you are planting seeds so that in the future you can turn around a new investment with speed and you want to find the people you jive with to make it a smooth process.

It would be helpful to know what properties actually make sense on paper in order to explain the numbers but here are a few points to consider as you weigh your options:

1. Cash Flow Analysis : It's crucial to ensure that the rental income from the property can cover both the mortgage and the cash-out loan payment. Multiplex properties often provide higher rental income due to multiple units, which can help cover these costs, but they may come with higher maintenance and repair needs.
2. Down Payment Strategy : Putting down 20-25% allows you to leverage your investment, potentially freeing up capital for other opportunities. However, it also means you'll have a mortgage to cover, so ensure the rental income can support this.
3. Property Condition : While lower-priced properties might offer better cash flow, consider the potential repair costs and the time and effort required to manage them. A thorough inspection and understanding of the property's condition are essential.
4. Location and Property Type : Properties in better areas or newer builds might offer lower immediate cash flow but could appreciate more over time and require less maintenance.
5. Long-Term Goals : Consider your long-term investment goals. Are you looking for immediate cash flow, long-term appreciation, or a balance of both?

If I am reading through the lines correctly, you looking to qualify for a DSCR loan, and still maintain enough liquidity to carry it and the additional $1200 payment for the cash out loan as well as whatever else you will need in reserve to maintain the property. It could still be a good investment even if it doesn't cash flow on day one. How to structure the financing is something that needs to be teased out.

Hi everyone.  I'm a recovering lawyer pivoting into the private lending game.  I've learned a lot from just browsing the discussions here.  Hope to make some meaningful contributions of my own.  If there's any threads that anyone finds themselves always coming back to look at, I'd be interested to know! 

Can you clarify a bit more?  You are turning your residence into an Airbnb or purchasing the airbnb for the price mentioned?  Is the multi-family a long term play or something you would be interested in right now?