All Forum Posts by: Kevin Woodard

They are indirectly correlated (you can have a high ARV and low rent if the market so chooses), however if you are looking at a DSCR for the refi both will be extremely important factors.

Leverage and ultimately cash back are both dependent on the ARV and rental income. ARV is the value of the property which determines max loan amount and ultimately payments (debt), and your income (rent) must be able to service that debt a reasonable ratio (no less than 90%). DSCR is the ratio of income to debt, and I haven't seen anything less than 90%.

Hope this helps.

@Greg HedenWelcome aboard! You could run into some seasoning trouble so you'll lock up capital for 90 days up to a year, depending on the product. Personally, I'd want as much cash on hand as possible right now. So if you have time (which you do) to finance, that's the route I would go. You may want to consider a bridge for some flexibility, buy avoiding a ppp and it'll be a shorter close period (3 weeks or less). Bridges do not have a ppp so if you think the rate will drop it's an option to refi later. Of course the DSCR is an option if you are going to cash-flow, you can underwrite them as long or short term rentals.

I have a few questions, I’ll shoot you a message. 

They sure do exist! 

I’m an Orange County native with some friends that do work in that area, let’s connect. 

I am not familiar with any lender that will lend anymore money than the lower of appraised or purchase price. Have you looked at the FHA renovation loan?

@Anthony Blanco Are you looking at owner or non-owner occupied? 

Check out Lend2Live on Facebook!

@Alex Breshears

Be on the lookout, I'll be reaching out!

The options are many I would say. I would compare my options. Pulling out the equity to acquire more cash flowing properties is a very valid strategy. 

Breaking it down, compared the terms of both a refinance and a line of credit. Ensure you can keep the line of credit during uncertain times.