All Forum Posts by: Kaylin Gonzalez

Yes, it's a 10-year declining dependent up on your term length and amortization period:  

What You Should Know About SBA Prepayment Penalties | Pursuit (pursuitlending.com)

Quote from @Kaylin Gonzalez:

would appreciate any information 

 Depends on the nature of it. Cashflow is simply what is left over after an asset generates revenue and pays all of its expenses. That is referred to in the tax world as net income. Then we need to characterize that income. Is it active or passive? Under the rules in section 469 of the tax code we then need to tax is accordingly. Passive income is generally more desired from an investor's point of view because they get a lower tax treatment than active income. 

Hey Kaylin! Nice to meet you! I'm glad you decided to introduce yourself. Ocala sounds like a great place for real estate investing. Looking forward to hearing more about your journey!

Welcome Kaylin!!!  I am a fellow investor in Ocala.  Be sure to attend the MCREIA and real estate investor group meetings.  You can find both on Facebook.  Good luck!!  I look forward to reading about your successes here.  Maybe I will see you at one of the investor meetings.

Quote from @Zach Edelman:

DSCR loan is qualified primarily on the cashflow of the asset. For an STR, the lender, assuming they are STR friendly, would likely use AirDNA projections, historicals from the seller (if they exist), or an STR 1007 market rent schedule to qualify the rents. They are purely for investment purpose and will require you to sign a non-owner occupancy affidavit at closing stating you don't plan to occupy the property for more than 14 days out of the year.

A second home loan is as it sounds, a loan for a property that you will use as a second home, and live in. Rules for this loan product require that the property is rented no ore than 180 days per year or generally half the time. This loan will be qualified on DTI/Tax Returns.

Just want to clarify your statement because I see this offer from DSCR lenders.  The policy states the property has to be available for over half the year for your own personal use.  By listing and renting on the OTA’s like AirBnb and VRBO you never lose the ability to occupy the property because they are not facilitation a legal lease agreement.  Additionally you are released from any restrictions for occupancy after one year.