All Forum Posts by: Ko Kashiwagi

Hi Sebastian,

Since you are a full-time student, a business-purpose loan would be a good financing option for you. These include fix & flip and DSCR rental program that don't require tax returns of W-2 jobs, but rather uses your credit and property income to qualify.

Hi Michelle,

Is this a multi-family above 4 units? The types of program would depend on the type of property. Either with residential or commercial, yes, there are programs that would allow you qualify based on income/debt. It also depends on whether you are purchasing a turnkey, doing construction or refinancing.

Hi Kristian,

It sounds like the property's rent covers its debt. Other qualifications like warrantability of the condo, credit score and liquidity matters, but it's looking good so far!

Hi Leroy,

Is this a primary residence? A line of credit is generally used for a HELOC on a primary. There are some exceptions where local lenders are willing to lend a line of credit for an investment property, but this is rare. An alternative is to put a 2nd mortgage, or to refinance and access the equity.

However, most of your options would involve qualifications with credit. Even non-conventional programs like DSCR refinance and 2nd mortgage involves credit scores. Are you able to increase your credit? This will greatly expand your options.

Hi Jordan,

If the deal makes sense, a DSCR loan is a viable options - it's harder for sure, but there are still turn-keys that can cash flow from day 1 in this market. Since minimum loan amounts for DSCR is 75k at the lower end, you can do this with 30-35k+ cash.

For hard-money, there are many programs that are more than 12 months, like 18 and 24 months. Besides, the point is not to hold on to the property but to add value and flip or BRRRR so it wouldn't be an issue. With hard-money, lenders will finance 75-80% of purchase with 90-100% rehab costs, so it is doable with <50k assets.

Creative financing is also a great way to get started. There are very low down payment options with seller financing and sub-to deals. These are more difficult to come across, so you would have to put more time to source deals.

Hey Jason,

What are your financing strategies for this? If you are using hard-money most lenders will consider projects that have higher rehab than purchase price to be a construction loan. For refinancing, are you doing conventional or DSCR? Conventional is usually max 70% LTV and DSCR is usually max 75% LTV. There are exceptions, but just a general rule of thumb.

Hi Ashton,

A HELOC is typically for a primary, so most lenders wouldn't be able to give a line of credit on your Charlotte property. You could seek a business line of credit using the property as a collateral, but most lenders don't do this - you may be able to find one if you talk to local banks or credit unions.

Alternatively, you could get a second position loan on it, like a HELOAN. This would be a close-ended mortgage, so you wouldn't be able to pull cash in and out multiple times like a credit card. Refinancing is another option too. Note that HELOCs and 2nd mortgage loans have typically high rates.

Hi Karen,

Yes, it's pretty common that the minimum loan amount are above $100k for a DSCR. On the lower end, the minimum loan amount is usually 75k. I do know of a few options for loan amounts below $100k, so I think there is still a chance you can do this deal under the LLC.

Hi Kevin,

Congratulations for getting your first rental so early! Since you bought it a week ago, this would not satisfy seasoning requirements for both conventional or DSCR loan. However, you may be able to finance this through delayed financing if you are looking to immediately obtain financing.

Hi Jason,

I think you could source for deals in both towns and analyze deal by deal. Personally, if a property can cash flow + appreciate well, it's well worth investing a little further away (you probably won't go to the property often anyways).

As long as your credit score is good, you can tap into the equity on your duplex in a few ways. Refinancing with conventional or DSCR is the most common way, which would allow you to do a cash out of 75% LTV.