All Forum Posts by: Ko Kashiwagi

As others have mentioned, HELOC or cash out refinance should work. HML typically only requirement the down payment + few months of reserves, so you shouldn't need to show that much in cash.

If the property is a rental property (not a primary), DSCR loans are typically a good fit for your scenario. DSCR qualifies borrowers with rental income rather than personal income, so you don't need tax returns.

HI Loulian,

Most lenders cannot do it but options are there even with less than 100k total loan. I've personally seen as low as 50k loan total on rehab deals.

Happy to chat.

Hi Muhammad,

It's a great idea to compare the markets and this is a million dollar question that I always hear from both sides. Even though you are doing the same "strategy" (BRRRR), the two markets are a complete different ball game. The type of properties, the cash required, type of projects and competition is not the same.

There's people swearing they are right on both sides between in-state and out-of-state, but personally if you have the option to do in-state, it's the best way to get started. Easier to stay in touch with the project and less uncertainty. The truth is in both market, you can make it work if you know what you are doing.

The ADU game is especially hot in Seattle right now so I'd look into that. Buy a house that's needs repair with a big lot, repair the house and build an ADU.

I've also heard from multiple Cleveland investors that contractors are very hard to find right now because of how many out of state investors have moved into that market.

1. Creative finance - seller finance or subject to. These strategies are honestly not in the realm of "passive investment" any more though as it takes many offers.

2. Go for projects that needs rehabs and get into flips/BRRRRs. You can go as low as 10% down and there are programs that allows this for first timers with good credit.

3. Save 20% + 6 months

How much equity does that house have? Any chance you can pull second position?

Structural engineer is definitely first step as Mason mentioned.

It totally depends on liquidity, risk tolerance and time. If it costs 50k and you have 50k, you'd have to have a high risk tolerance and time to do this. If you have enough money but your business is the main driver of income in most cases you can make more money putting time into the business.

You could also get creative here. Maybe partner up with a local flipper on the renovation, split the profits after the sell and move on.

Hi Andrew,

What does your and your partner's income look like? You might be able to structure it to still qualify for conventional loans. For example, if your partner has income and no debt, perhaps you can invest through her, or if it makes sense to combine your income with her that might still get you below 50% DTI. Best to check and see first.

Most DSCR loans go off of the middle score so it'd be good to get a soft pull as I've seen scores come in way off from those apps sometimes. You can find a lot of. lenders through the "find a lender" tab above!

I would get a mortgage statement and payoff statement to get an exact idea of what you need to do to get current. You can double check the info by calling the lender/servicer

Hi Troy,

It depends on each deal. Sometimes the programs that allow vacancy has the same or even better rates. It's a good idea to always line up and get started early so you have options!