All Forum Posts by: Lori Bray

Quote from @Jared Rine:

@Lori Bray.. late to this thread, but going to give my $0.02. Do these properties have anything owed on them? If your expenses are too high for your income, but your rentals carry themselves and your credit is decent, then I'd suggest looking into a DSCR loan, if you actually need the cash out. DSCR = debt service coverage ratio. It's the calculation used to make sure the property cash flows and as long as it's above 1.00, you're good. You can go less, but you'll pay for it. DSCR = gross rents / PITIA (proposed payment). These types of loans don't take into account any of your personal income whatsoever or even care if you're working, etc.

Thank you Jared. I appreciate all replies and info. I’m trying to learn everything I can. Yes all of my properties do
have mortgages. Yes they cash flow. I keep reviewing the DSCR loans. Honestly they seem too good to be true . As you said’ they don’t even care if you’re working’ that’s strange.  
Considering the markets are up. But I feel like things are quickly changing in my area. Houses are sitting longer and prices are coming down. What’s the best way to find out what my actual property value is at any given time? For instance my duplex I bought for 85,000 just over a year ago. Similar properties currently selling right in the same area easily $120k But I don’t know if mine will actually appraise for that so I’m not really sure how accurate the information that I’m giving to these lenders is. Thank you !

Thank you ! That is helpful. I've spoken to a couple of people since I made this post but still have not worked out a solution. Partially because I'm impatient and I just want my life to move forward. I have filed to create my LLC ! i think I want to refi two of them into the LLC. I did have a lender tell me that my personal credit score does matter as far as interest rate for the DCCR and they were willing to finance less % than I was hoping. But again I'm still working on it and definitely still accepting all advice so thank you so much for the added comment.

thank you Bill, you are correct.  I have two kids finishing high school in the next few years, then I can make some changes. appreciate the input. 

honestly that is even more confusing to me. I thought the LLC payment thing sounded weird which is why I'm asking here. all the rentals cash flow and pay for themselves. its mostly one credit card and one car loan (husbands that i has to absorb to keep the thing). I feel like i'm stuck in this situation for a while. I figured I'd ask about the LLC part because if I had one less property payment on the credit report then maybe it would offset the credit card and car loan.

I need advice badly. My husband passed away so my W2 income is now half what it was. I have 2 single family rentals and a duplex. Plus my personal home. We never started an LLC. I spoke to Wells fargo about cash out refi on one property to continue investing but he says my debt to income ratio is way too high. A friend said that if I move the properties to a LLC then the monthly payments don't show on my personal credit report therefore reducing the debt to income ratio. any suggestions or comments ?

college hill proper is pretty nice. both areas sit on areas that go shady fast.  you have to see it to know. would not buy till i moved here.

well I completed my closing, my husband showed the house 4 days later and the tenant moves in this weekend! we painted the house inside as a family and the kids worked hard too. I am excited to see them involved and learning about making good choices with their money and opening up new ways of thinking about life and future.   Bonus of course -good cash flow! while my husband had thought I was crazy most of this journey, he did support me in the end AND I think he is beginning to see what all my excitement is about!  I'm already looking for another home to buy. 

so far. getting everyone to the closing date and time!  I cannot wait to get this listed for rent

I have one accidental rental that was our prev home and I am closing on my second rental next Tuesday!  4/11.