All Forum Posts by: Katherine Blazer

There are one-year bank statement/profit loss statement programs he can start planning for. Of course, two years will be better rates and terms. 

If he banks for the business with a local bank, they may have some options. 

It depends on what type of loan you are doing. Conventional, you will need room in your DTI for another payment. You get to add 75% of the projected rental income to offset that. Private Money/Non-QM would want to know that the asset is going to cash flow.

I am both and realtor and licensed loan originator. I think a lot depends on what you want your life to look like and what you like doing. I work more on the lending side, both commercial, investment residential, and traditional residential in Florida.  I personally like this side of the business because it's mostly done from my laptop and frees me up to travel and work from anywhere with wifi. I also am able to time block and work on my investing. 

If you enjoy showing houses and helping people shop, being an agent or realtor may be the better option. You can also choose between focusing on residential, or commercial inside of that bucket also. 

You are right; there is a lot of money to be made in real estate; however, its not as easy as the tv shows make it look. It is hard work, and true wealth comes from owning real estate. 

Congratulation on getting started, @Jose Vernaza! I am out of St Pete, and Orlando is a great market! 

One other thing to make sure you are adding into your calculations are holding costs and closing costs. There are closing costs when you buy and refinance. They cannot be lumped into the loan amounts with most lenders. 

When you look at what the DSCR loans allow, they are going to max out between 75 and 80% of the after-repair value (ARV), you want to make sure that your total cost is below that.

It depends on which lender you are working with. Some lenders work with multiple funds and banks, so if it does not meet one group's guidelines, they move on to the next. 

But as Erik said, they are usually the last place people come to. 

Vacation homes normally need to be in different places. Like a beach house and a mountain house or maybe a different city, like you need one in Knoxville for UT games! 

What is the asset value?

Joe, Do you work in Knoxville, and have you been approved for the FHA mortgage?

Yes, you can, and with Conventional loans, you can use 75% of projected rental income from your current house to offset that mortgage. 

DSCR loans are used for rental properties. They are designed to make sure that the rental income covers the cost of the property and debt (principal and interest).

Why are you trying to refinance the conventional loan? I am a little confused about what your goals are. 

Most DSCR loans don't care about what your work history is as long as you have some experience in real estate.