All Forum Posts by: Kate Purse

@Jaycee Greene I am renting to a salon owner and he has his place of business there. It just happens to be a historic home. Current value is probably $360k abd monthly rent is a little over $3000k (Triple Net lease so it includes taxes and insurance on my end). I can't remember what DSCR terms were when I looked into it last. I was overwhelmed and put it away for a bit since I had some time to think on it.

I have been shopping around, but it’s been challenging.  Either the percentage rate is high or the closing costs.  Wondering if I’m missing out on a strategy.  

This is a house that is zoned for commercial use. It's occupied and I have 3.5 years left on the current lease. It cash flows and I'm at 70% LTV.

The commercial loan world is so different from conventional. 🤷🏽‍♀️

In need of advice on how to proceed with refinancing my commerical property in Bastrop. I have a 3 year arm and would like to shop out the loan and leave the current institution. I have a 15 year fixed rate of 8% but it will likely go up. Questions: Should I shop for another 15 year fixed rate commercial loan (one bank gave me favorable terms but closing costs were 10k!) or should I look into DSCR loans, OR is there a way to refinance to a 30 year loan???

Advice?  Thanks!

Thank you Lynn!  

The hubs and I are looking for someone to help us with legal aspects of our current real estate investments and help with closing documentation on future investments. :) We buy SFH fixer uppers--buy and hold and flips. Any recommendations would be much appreciated!

Thank you David and Aaron!

This is a commercial property.  

This is the message from my insurance company:  "The reason for nonrenewal is...your operation includes a building that is a converted dwelling. This is not an acceptable exposure under the ****** Small Commercial business segment's underwriting guidelines."  

This is my brokers response when I asked about it: "I’m not sure why now converted dwellings (buildings that original use was for residential and then converted to commercial use) are an issue with some of the carriers."

My hope is to find a recommendation for an insurance company that will insure a commercial property that is considered a converted dwelling.  Hope this clears it up!

No one is living in it.  I don't live in the town I am investing in and the businesses around me that I am in contact with are experiencing the same thing.  So, I'm reaching out to see if I can get some recommendations.  Thanks!

Hey friends!  My insurance company is dropping me because my commercial property is a home converted (and officially zoned) to commercial space.  I now need to find insurance but struggling with my current broker.  Recommendations for commercial property insurance in Texas?  Thanks!

Kate P.

Same scenario here! We closed in March, rehabbed, rented and we're ready to refinance, but conventional loans need a 6-12 month seasoning period and a DSCR loan will only give us 63% LTV, astronomical closing costs, and STILL won't come even near to reimbursing us for HML loan or our out of pocket costs.

Our solution: We found a local bank that will give us a conventional loan (non-owner occupied), 20 year term, 7.9% with a three year arm and we are going to JUMP on it. The bank will work with us on a refi to a 30 year loan after their 12 month seasoning period requirement. We pay a bit more out of pocket now, but we'll get debts paid, rehab costs ALMOST covered and by next spring we will hopefully start making some cash flow. BRRRR is hard right now. Good luck!