All Forum Posts by: Katherine Blazer

@Harambie Brannon What are you trying to accomplish? 

I agree with @Matthew Crivelli. But I am not sure why you would want to do that. 

We always look for ability to repay, so if you are looking to just hold a property and not rent it, you would need to show your income from other streams to show ability to repay. It also wouldn't be a DSCR as that is a debt service coverage loan. But there are investment property loans or hard money bridge loan options.

Hi Jacob, most DSCR loans are designed for investment purposes and not to be used as a primary. They use the rental income to offset the property's debt (mortgage, taxes, and insurance). So if you are using it for your primary you would be taking away that income. For FHA, you can actually use rental income to offset if you look at multi-doors, like a duplex, triplex, or quad, these are just a few things to consider.

Hi Tucker, Congratulations on starting the hunt for your first property in Tampa! 

Have you talked to a lender and started the pre-approval process? That would be my first step. Depending on your debt to income, you may need to look at the multifamily option so that you can use 75% of the rental income to offset your expenses. 

I would also be aware of rental regulations from the municipalities if you are planning to rent out short-term. 

Hi Travis, You absolutely could increase your renovation sending. Something to think about is that you may have unforeseen costs, holding costs and additional closing costs on the refinancing. 

@Anthony Freeman They were most likely talking about lenders before 2009 and Dodd-Frank Regulations. Dodd-Frank Regulations apply to loans being used for personal property- ie your primary residence or if a loan is closed in your personal name. In very simple terms it says that we have to get paid the same amount from each bank. The idea is that I am not going to push you into a loan or bank that is not in your best interest because I make the same no matter what. 

However, if you open a business to hold property in, you should be versed in reading contracts, documents or are working with an attorney to do so for you. So on hard money loans and some dscr closed in your entity/business name, lenders are paid with points upfront or a margin on the rate. 

Not sure if this helps, or you had an example of the conflict in mind?

 Hi @Richard Ruedas, we use these loans and I specialize in them. The main problem I see is most with interest rates being higher than 2 years ago, properties are not cash flowing the way the funds need, and the investors like. We are still closing them every week, it is just being aware of what your cash flow will be as well as what the pre-payments are. 

I work with Ryan Gallagher - [email protected]

You should talk to some local New York lenders about bank statement loans. That will most likely be their best bet. It will also most likely need to close in their personal name

I am a lender and realtor and Tampa Bay. I have closed a couple of these loans this year and they are a great option! Just make sure you don't exceed the county's income and give your HR department a heads up that they must verbally speak to them a couple of days before closing! 

If house hacking and growing a portfolio is your long-term goal, make sure if you sell or refinance, you are adding this 2nd mortgage back in. You also may have trouble doing a HELOC on these homes because they would be 3rd.

I am in St Pete. I will tell you that some areas of Tampa see flooding but it's more because of the way the city was originally developed, similar to Charleton, SC. The city is working to correct the issues. I don't see us losing a lot of value because of higher tides as you see in the Outer Banks. You may see a loss of value in missed rental income as those continue to climb in our area. But that is just my opinion.