All Forum Posts by: Lauren Robins

Yes, exactly! Let me know if you have any other questions. I LOVE talking about this stuff.

When you're looking to purchase a multifamily property in San Antonio using a DSCR (Debt Service Coverage Ratio) loan, it's important to consider a few factors to help you choose the right lender and loan terms for your needs. DSCR loans are particularly attractive for real estate investors because they evaluate the property's income potential rather than the borrower's personal income, making it easier to qualify for larger loans.

There are a number of reputable lenders in the San Antonio area that offer DSCR loans. Longleaf Lending is one option that offers DSCR loans with interest rates starting at 6.6% and loans ranging from $75,000 to $3 million. They also have a minimum FICO score requirement of 660. LYNK Capital, located in Raleigh, NC, but with services nationwide, provides loans with no personal income verification required and offers up to 80% loan-to-value (LTV) ratios. They specialize in 30-year rental loans and also cater to multifamily property investments. Tidal Loans is another option, offering flexible terms and no seasoning requirements for their loans, starting at 7%. They also have lower minimum credit score requirements, making them an accessible choice for many investors.

To select the right DSCR lender for your investment goals, you'll want to compare several key factors. First, look at the loan terms and flexibility. Interest rates, loan-to-value (LTV) ratios, and repayment terms are all crucial to understand upfront. For example, some lenders may offer lower interest rates but higher fees, while others may provide more flexibility in loan structures, such as interest-only payments or longer repayment periods.

Another important consideration is property eligibility. Ensure that the lender finances multifamily properties, as some may specialize in single-family homes or specific types of residential properties. Some lenders may also have stricter requirements when it comes to property conditions, so verify that your investment property meets their guidelines.

The credit score and documentation requirements are also crucial. If you have a complex financial situation, look for lenders that offer loans with no personal income verification. DSCR loans are often more flexible when it comes to income verification, but each lender will have different guidelines.

Finally, consider the speed and efficiency of the lender. If you're working with tight deadlines or need a quick closing, ask about the typical processing and closing times. Some lenders can close in as little as 15-30 days, which could be a deciding factor if you're in a competitive market.

To help make the decision easier, consider comparing the following:

CoreVest Finance – Known for their experience in real estate investment loans, offering up to 80% LTV and flexible loan amounts.

Longleaf Lending – Offers fast closings with no income verification, making it an appealing option for investors with strong property cash flow.

LYNK Capital – Provides no personal income verification and is known for offering flexible loan terms and competitive rates.

Tidal Loans – Offers no seasoning requirements and interest-only payment options, which may be ideal for investors with a more complex financial picture.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

If you have $100K in cash, you can certainly use it for the down payment and to cover some months of mortgage payments. However, if you don’t have the income to support a mortgage based on traditional loan qualifications, it might be more difficult to secure a standard mortgage in your name alone.

One option to explore is Non-QM (Non-Qualified Mortgage) lenders. Non-QM loans are a type of mortgage that doesn't follow the typical guidelines set by Fannie Mae or Freddie Mac. These loans often focus on factors like the property's rental income instead of your personal income. Specifically, DSCR (Debt Service Coverage Ratio) loans are one form of Non-QM loan that looks at the rental income generated by the property to determine whether you can afford the mortgage. If the property generates enough rental income to cover the mortgage (and then some), it could make it easier to qualify.

If you're open to bringing in a co-borrower or partner, that could also improve your chances of securing financing. A partner with the income or creditworthiness to qualify for a loan could help you move forward with the purchase. Since you’re planning to operate the property as a short-term rental, this might also make sense from a business perspective.

Another option to consider is owner financing, where the seller acts as the lender. If the seller is motivated to sell, they may offer terms that are more flexible than those of a traditional lender. With owner financing, you wouldn’t need to meet the same income qualifications, and the loan terms could be tailored to fit your needs. This could be a great way to secure a property if you’re unable to qualify for a mortgage through a bank.

For a more short-term solution, hard money loans could be an option. These are typically higher-interest, short-term loans backed by the property itself rather than your personal income. Although they come with higher costs, they can be a good option if you want to quickly acquire a property and are confident in the future rental income. Once the property generates consistent revenue, you could refinance into a traditional mortgage later.

Similarly, a bridge loan might be a viable choice. This is a short-term loan that can cover the purchase while you figure out longer-term financing. If the rental income from the property is strong, you might be able to refinance into a conventional loan after you’ve established the property’s income history.

Lastly, there are short-term rental-specific loans (STR loans), which some lenders are now offering. These loans are designed for properties that will be used as short-term rentals and take into account the rental income potential, rather than focusing solely on your personal income. These loans are relatively new but could be a great fit for your situation.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Quote from @David Matthews:

Hi all, I have a 4bed 3bath single story ranch home with a basement. Upstairs is 3/2 with a primary en-suite bathroom and two beds that share a bathroom. There is a kitchen and living room on top floor.

downstairs is a 1bed 1bath with living room, office, and second kitchen. I was thinking the other day... is it more valuable to have this second kitchen / basement apartment OR, rip out the kitchen for a fifth bedroom? I mean specifically from an appraisal perspective, not potential rents. 

to be clear - there are many homes in the area that are 5/3 so this wouldn't stick out.  

If your basement kitchen functions as part of a self-contained suite—something like an in-law unit or an accessory dwelling unit (ADU)—then it could add value to the home. This is especially true if it’s well finished, has a degree of privacy or a separate entrance, and if similar setups are common in your market. Appraisers might give a positive adjustment for its functional utility, particularly if multi-generational living is in demand where you live. However, if basement kitchens are rare in your neighborhood or not supported by comparable sales (comps), that second kitchen might not contribute much—or could even be viewed as a less desirable “oddity.”

On the flip side, converting that space into a fifth bedroom can also increase appraised value, especially if there are many 5-bedroom, 3-bath homes in your area and they sell at a premium. Appraisers work largely off comparables, so if 5/3 homes consistently sell for more and your total finished square footage is similar, the extra bedroom could help push your home’s value higher. That said, the value gain depends on doing the conversion well. If it compromises layout flow or removes useful living space (like a rec room or bonus room), it might not be seen as a clear upgrade.

Given your area has many 5/3 homes, it’s important to look at what’s actually selling and why. Are those homes valued higher because of the extra bedroom alone, or are they larger overall with better layouts? Similarly, are basement kitchens or in-law setups found in any of the higher-priced comps? If so, you may already have an asset that makes your home stand out in a good way.

If you’re not sure which route to go, a hybrid strategy might be the safest: keep the second kitchen and stage or market the basement as a flexible-use space—such as a guest suite, home office, or multigenerational living area. This keeps future options open while allowing appraisers and buyers to see value in different ways.


Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hi Fay!

It's not impossible to do a cash-out refinance on your single-family rental (SFR) property in Irving, TX while living in Washington, but it can be challenging. The main reason you're facing rejections from national lenders likely comes down to a combination of factors: it's a non-owner-occupied property, you're an out-of-state investor, and you're seeking a cash-out refinance—all of which tend to raise red flags for many lenders, particularly those with strict underwriting policies.

Some national lenders simply don't work with investment properties, or if they do, they have stricter terms and lower loan-to-value (LTV) limits—usually topping out around 70–75%. Others won't lend to borrowers who don't live in the same state as the property, citing concerns about asset management or risk. Additionally, Texas has some unique lending laws, particularly around cash-out refinances (notably the Texas Section 50(a)(6) loan rules), which, although primarily intended for primary residences, still make some lenders more cautious overall about doing cash-outs in Texas.

That said, there are definitely viable paths forward. One option is to work with local or regional lenders based in Texas. These lenders are often more comfortable with Texas law, may be more flexible with investor clients, and are less likely to have blanket policies rejecting out-of-state borrowers. Another option is to look into DSCR (Debt Service Coverage Ratio) lenders. These are non-QM (non-qualified mortgage) lenders that base loan approval on the property's rental income rather than your personal income. They tend to be more investor-friendly, allow cash-out refis, and are often okay with out-of-state ownership—though their interest rates and fees are usually higher than conventional loans.

Portfolio lenders are also worth exploring. These lenders keep loans in-house instead of selling them to Fannie Mae or Freddie Mac, which means they set their own underwriting rules. If you can find one that caters to investors, you may have better luck. In general, your best move may be to work with a mortgage broker who specializes in investment properties and has access to these kinds of lenders. A good broker can shop your loan around and match you with lenders who are more likely to say yes, saving you a lot of time and hassle.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

What you're experiencing is a very common challenge when managing multiple properties and using a single credit card to pay for utilities across them. When the credit card statement simply shows generic charges like “SCE” or “SoCalGas,” without indicating which property each charge is for, it creates a manual and error-prone reconciliation process. Professional property managers have developed systems to handle this more efficiently and accurately.

Top-tier operators typically ensure that each property has its own dedicated utility account. Even if all accounts are paid using a single credit card, having a unique account number tied to each property allows for easier matching of charges to addresses. Many property managers also request that utility providers send monthly PDF bills to a centralized email address, which can then be uploaded into property management software like AppFolio or Buildium.

In fact, property management platforms like AppFolio, Buildium, and Propertyware often support utility billing workflows. These platforms allow you to upload bills and assign expenses directly to the correct unit or property. Some even integrate with third-party utility billing services like Conservice or SimpleBills. These services automatically retrieve bills from providers, match them to the correct property via account numbers, and sync the charges into your accounting software. While they do charge a fee, they save significant time and reduce the risk of mistakes—especially helpful during audits or year-end accounting.

For those who don’t use integrated software, some managers add internal job codes or property numbers in the memo field when making payments via online portals or bill pay systems. This creates a reference trail that simplifies matching expenses during reconciliation. While this method doesn’t fully automate the process, it adds a layer of clarity that saves time down the line.

When no automation is in place, managers often fall back on downloading all utility bills each month and manually logging them into a spreadsheet or accounting system. Each charge is assigned to a property based on the utility account number. This process can work if your team is organized and follows a clear set of procedures—many property managers delegate this task to a virtual assistant or bookkeeper.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Once you’ve secured a property under contract with a seller—especially at a price that allows room for profit—the next step is finding a buyer to assign the contract to. One of the best ways to do this is by building a solid cash buyers list. You can use tools like Propstream or BatchLeads to pull lists of investors who have purchased properties in your target area with cash in the last 6–12 months. These are your ideal buyers. You can also check your local county records for cash transactions or look through recent sales that didn’t involve a mortgage.

Facebook groups are another excellent source for finding investors. Join groups focused on wholesaling and real estate investing in your area, such as “[Your City] Real Estate Investors” or larger ones like “Wholesaling Houses Full-Time.” Post your deal and let people know what you have available, or simply ask who’s actively buying in a particular ZIP code. The community is usually responsive and may even connect you with buyers directly.

You can also partner with other wholesalers or flippers who already have active buyers. This is called a JV (joint venture) deal, and while you might split the profit, it can be a great way to close deals faster, especially if you're just starting out and your buyer network is small. Working with others who already have an established list helps you move your contract without delay.

Online investor marketplaces are also worth exploring. Websites like Connected Investors, Craigslist, and even Zillow's FSBO section can be used to promote your deal—just make sure your marketing complies with local rules and clearly states that it's an assignment or wholesale deal. The more eyes on your property, the better your chances of finding a serious buyer.

Once you have a buyers list, use tools like REI Reply, Launch Control, or even Mailchimp to send out details of your deal. A simple, direct text or email such as: "3/1 in 19144, light rehab, ARV $215K, Asking $115K. Interested?" can get quick responses from investors. Keep your messages short and clear, and include your contact information for easy follow-up.

It's also smart to set up a simple landing page or lead form to attract buyers passively. Platforms like Carrot or REI Blackbook can help, but even a basic Google Form asking for a buyer's name, email, phone number, and buying criteria will work. Post this link on social media and include it in your email signature to gradually build your list.

Finally, don’t underestimate the power of in-person networking. Attend your local real estate meetups, investor associations (REIAs), or property auctions. These events are full of flippers, landlords, and other investors looking for deals. Introducing yourself and handing out basic property sheets or business cards can go a long way.

As you connect with potential buyers, be sure to vet them. Ask if they’ve closed any deals recently, what ZIP codes they’re targeting, how quickly they can close, and whether they’re using cash or hard money. This helps ensure you're working with serious, qualified buyers who won’t waste your time when it’s time to assign the contract.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

When considering the purchase of an 8-unit multifamily property, it's important to structure your due diligence period thoughtfully to avoid surprises after closing. A typical minimum due diligence period should be at least 21 to 30 days, giving you adequate time to perform a comprehensive review of the physical condition, financials, and legal standing of the property.

Physical due diligence is usually front-loaded in the process and should begin as soon as possible. This includes inspections of each unit, the roof, plumbing, HVAC systems, electrical, and structural elements. Pest inspections and, in some cases, an environmental assessment (like a Phase I ESA) are also essential, particularly if financing is involved or the property has commercial zoning or past industrial use. If renovations are anticipated, this window allows time to bring in contractors to provide estimates based on current conditions.

Financial due diligence is equally important and should involve a thorough audit of the rent roll, lease agreements, and operating statements such as the trailing 12-month (T12) income and expense report. Ideally, you'll want to review the last couple of years' operating history along with bank statements or other evidence that supports the seller's reported income. Also, reviewing utility bills, tax assessments, and any existing service or maintenance contracts can help you estimate your ongoing expenses and identify any operational inefficiencies.

Legal and compliance due diligence typically takes the longest and may include title review, a property survey, confirmation that the property is legally zoned for multifamily use, and a look into local code compliance or permit history. It's also important to examine the leases in detail and, if possible, collect estoppel certificates from tenants to confirm lease terms and rent payments. This period is also when you or your attorney should ensure there are no liens, easements, or other title encumbrances that could affect your use or financing of the property.

As for the commercial appraisal, it’s very important to review it before the due diligence period ends, especially if you're using financing. The appraisal not only determines whether your lender will approve the loan and how much they’ll lend, but it also serves as a second opinion on the property's market value. If the appraisal comes in lower than the purchase price, you may need to renegotiate with the seller or come up with a larger down payment. Appraisals also test the validity of your pro forma assumptions—such as projected rents or cap rate—so reviewing it can help you avoid overpaying for a property based on optimistic underwriting.

Because appraisal reports are sometimes delayed, it’s a good idea to make your offer contingent upon receiving a satisfactory appraisal, even if that extends past the general due diligence period. You can include a clause like, “Buyer reserves the right to cancel the agreement if the appraisal is less than $___ within X days of receipt,” to protect yourself. Overall, the appraisal serves as a critical safeguard, especially in a hot market or when the seller is pricing based on future rather than current performance.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

A Qualified Personal Residence Trust (QPRT) is a widely used estate planning tool, particularly among individuals with significant assets who are looking to reduce the size of their taxable estate. These trusts were especially popular before the federal estate tax exemption increased significantly in recent years, though they still have value in certain high-net-worth scenarios. People who have used QPRTs typically choose trust terms ranging from 10 to 20 years. The length of the trust term is a strategic decision: a longer term reduces the value of the taxable gift to the beneficiaries (since there is a greater chance the settlor might not survive the term), but it also increases the risk that the settlor might pass away before the term ends, which would negate the intended estate tax benefits.

It is indeed true that if the settlor dies before the end of the QPRT term, the full fair market value of the residence is included in their taxable estate. This inclusion is based on Internal Revenue Code Section 2036, which essentially treats the trust as if it never existed for estate tax purposes in such a case. As a result, one of the key considerations when setting up a QPRT is the settlor’s health and life expectancy. Surviving the full trust term is crucial to realizing the estate tax advantages. For this reason, individuals considering a QPRT often balance the potential tax savings of a longer term against the increased risk of mortality associated with it.

If you're considering a QPRT, it's helpful to run hypothetical calculations to weigh the benefits and risks, particularly in light of the current estate tax exemption and the potential sunset of the higher thresholds in 2026.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

You’re asking all the right questions, especially as someone with two rentals and plans to expand. Choosing the right property management and banking setup can make a big difference in how efficiently you scale. You’re absolutely right that most traditional brick-and-mortar or even online banks don’t offer high-yield savings accounts (HYSAs) specifically for businesses or LLCs. In most cases, business savings accounts have lower interest rates, and options for rental-specific integrations are minimal. That’s why platforms like Baselane and Stessa stand out—they’re designed specifically for real estate investors and currently offer some of the best HYSA-style yields available for rental-related funds.

Baselane, in particular, has been a favorite among small landlords thanks to its integrated banking features, solid APY on balances (as of April 2025), and built-in rent collection and expense tracking. Stessa offers many of the same features and also has a strong suite of financial reporting tools. If your goal is to have your banking, accounting, and rental income streamlined into one ecosystem, both platforms are worth serious consideration. One tip: if you’re holding tenant security deposits, make sure the platform allows for separate sub-accounts or labeling to stay legally compliant.

Mixing rental property banking with management software isn't inherently bad—in fact, it can be a smart move if your operations are relatively straightforward. Having everything in one place helps with bookkeeping, simplifies tax prep, and gives you a clear picture of property performance without needing multiple platforms or syncing tools. However, if you operate through multiple LLCs, have joint ventures, or need more complex financial oversight, you might consider separating your banking and property management workflows. In that case, a standalone bank account for each LLC plus external tools like REI Hub or even QuickBooks (with some customization) may be more suitable.

Beyond Baselane and Stessa, other platforms you mentioned—TenantCloud, Avail, and RentRedi—are great for direct landlord-tenant interactions like collecting applications, handling maintenance requests, and generating leases. They don’t offer banking or HYSA-like returns, though. If you want more full-service support and anticipate scaling to long-distance rentals or hiring agents to help, a platform like Hemlane could be worth exploring. As for QuickBooks, it’s a powerful tool but tends to be overkill for small portfolios unless you’re already familiar with accounting workflows or have a good CPA helping you out.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.