All Forum Posts by: Katherine Blazer

@Annie Johnson, You have gotten all types of advice on this post. Unfortunately, they are all right. If you want the perfect time, you won't find it. I am out of St Pete, and our overhead and market appreciated quite a bit more than other areas in the last few years. I would personally look for where jobs and companies are headed and try to find and purchase properties that make sense as a rental. I believe in the FHFA Index yesterday, Floria's appreciation was around 22%. So if you follow Jose's advice, maybe stick closer to the 15%... or a little more.

I would guess, like most things, it will depend on your market. Before you agree to only work with them for 6 months. I would suggest trying to find and attend some local REIA meetings and networking groups. You may find wholesalers and other agents that are a better fit.

Yes, you should be able to. You will need to be able to qualify for the conventional loan payments, and it will need to appraise. If you are just paying off the hard money loan, you should be able to do that as soon as work is done, and it will appraise and qualify for insurance. If you are hoping to pull equity out you may need to hold it for a certain number of months. 

@Drew Leonard, I would go for it! I am a Lender, Realtor, and Investor. 

Don't let other people's fears scare you.

I always present all options and let them decide what is best for their family. Hey, I can buy your home; here are the benefits, or I can list your home on the MLS; here are the benefits. Some people are happy about having a time frame and price to move forward with. They feel like they have control over the transactions. Don't forget some people do not have the money to complete repairs so that a traditional buyer could buy it.

You may want to check with the lender and see if they can hold back funds in escrow to be slated for a contractor. 

Does the property qualify for insurance? 

I agree with everyone else on this post. Once you have claimed the rental income on your taxes for the duplexes if you are cash-flowing and not writing off a bunch of wild stuff. That should show positive for your DTI. The 6 plex being a commercial loan, should support itself unless it's a value-add. So maybe you need an accountant that specializes in real estate and maybe more discussion with your lender.

I work with a few lenders that are still at 75%, but as Matt said, most are at 70%, and rates are higher on the 75%. @Emilio Pereira

I agree with everyone on this post. DSCR loans normally have at least 20% down and are higher interest rates. They are designed for homeowners that are not going to be living in the property.

 I agree- Lender 1. 

I am a little confused about the question.

What does the math look like? What is your cash needed to close for both lenders, and what is your monthly payment for both lenders?

This is a really simple way to look at it, and there are other terms that may apply but based on the info provided above, those would be what I was concerned with. Appraisals are going to fluctuate throughout owning the property. It's not like your home is always going to be valued at this appraisal amount.