All Forum Posts by: Kristen L Garner

Hi Sai, I invest in Indianapolis.  I also work with investors who buy in various areas of Ohio.  I'm still seeing investments that pencil out in both states. DM me if you'd like to chat and best of luck! 

Hi Jason, welcome! I personally invest out of state in IN but I work with flippers in IL.  Best of luck and happy to connect if you want to chat anything over. 

Hey Nick, There are 80% LTV cash out options on some DSCR products. You just need to hit a certain credit score threshold and the property needs a .75 or higher DSCR ratio (monthly rental amount divided by PITI). Once you drop down to 75% LTV there are plenty of other options and rates get a little better than what you will see at 80% cash out.

You will want to explore the category of loans called "non-QM". The most popular in this group is DSCR (debt service coverage ratio) where you qualify on the property itself rather than your personal income, taxes, DTI, etc. It is popular amongst investors because you don't get capped at a certain amount of products, it requires less paperwork, and it doesn't look at DTI/taxes/income.
However, there are other loan types in this category as well such as Bank Statement Loans, P&L Loans, Asset Based Loans, etc.
Generally speaking you will be able to get 80% LTV on a cash out refi (as long as credit is decent and property doesn't have any super unique qualities). You will also want to take seasoning into mind. Different loans have different seasoning periods - so you'll want a nonQM loan with low or no seasoning and that will still allow you to use the higher of the new appraised value vs the original purchase price.

Hi! I'd be happy to chat if you'd like to DM me. As far as financing goes - make sure you use a loan officer and loan type that supports your type of future rental income. For example, some DSCR products allow STR income while others don't. Some lenders use appraisers and AMCs who are more experienced in finding STR and MTR rental comps which would greatly impact your DSCR ratio or amount of future rental income that can be used towards your DTI (if doing a conventional loan).

Hey Zeke, There are tons of different loan products so it will be all about finding the one with guidelines that meet the needs of your scenario.
You will want to consider the seasoning period guidelines (how long you have owned the property). Some DSCR products have no seasoning period and some do. If you made improvements you want to make sure that the no seasoning product will let you use the higher of the appraised value and purchase price, not the lower. Like Devin stated, you can also do delayed financing if you purchased in cash.
You will also need to consider LTV. Usually 80% LTV is the max for investment. This means your cash out proceeds would be 80% of the appraisal value, minus any fees associated with the transaction. If it's a unique property or your credit score is low, you may be capped at 75% LTV.
Best of luck!

I work with a great general contractor in your area! If you'd like their info please DM me. Best of luck on your project! 

Sure am! @Rose Jones

Hi Drew, If you were purchasing it as owner occupied you could put down 3.5% (FHA) or 5% (conventional) - that is good news for the house you are buying for yourself and your wife! But generally speaking, investment properties require a minimum of 15-20% down and sometimes 25% for first time investors or tricky/unique scenarios.

There are some ways to get creative with down payments: seller financing, using an investment loan that allows "gifted funds", etc.

Best of luck! 

Hi Jose! Depending on the loan product used - to purchase a non owner occupied investment property you will need a 15-20% down payment plus closing costs. (different loans have different seasoning periods for your funds and different guidelines on allowing gifted funds - something to consider) To determine closing costs you can call a local title company in your chosen area and ask them for their fee sheet and your lender should be able to provide you with any other fees associated with the loan. I would start with narrowing down a location and property type and then making sure you are connected with a lender so you are running your numbers with accurate data. I'd be happy to connect and chat if you'd like to throw ideas around. I invest out of state as well.