All Forum Posts by: Mark Munson

Hi @Austin L Miller

If the property is a duplex, they will value it based upon a Sales Comparison Approach, not Income Based. If the area has little comps, the appraiser and/or lender may extend the radius to find a comparable property, meaning beyond the typical 1 mile radius. Also, I wouldn't count on a cash-out at 80% LTV, as most cash-out refinances cap at 75% LTV and more rural areas may get less leverage as well. I would ensure you have the take out financing in place prior, as you may not be able to get all the capital you need if your only option is 75% LTV and you are unsure about the value. Feel free to reach out if you have any questions and best of luck!

Hi @Andrea Eble, 

If you are just starting REI, I always encourage people to flip a house or two, then buy a rental. By doing that you are always injecting more capital back into your company, thus allowing you to scale quicker. If you can raise capital outside of flipping, then buying rentals now are fine. To be successful using the BRRRR method, just ensure you are buying the property deeply discounted enough that when you go to refinance you are left with enough equity to cash-out, as the max LTV on cash-outs on DSCR loans tend to be 75% of the appraised value. Best of luck and feel free to reach out if you need any advice, I'd be happy to answer what I can.

Most STR lenders can get to 80% on purchases still. If you don't have existing statements (at least 3 months), some lenders will use AirDNA or other projections. Alternatively, if you have an existing STR in the same area, they can use those figures for the new purchases. And lastly, if you don't have statements nor an existing STR in the area, they can use figures from a Property Management company in the area with a similar STR. Feel free to reach out if you need guidance or some recommendations, best of luck!

Partial release clauses allow you to sell one property in the blanket/portfolio loan without the entire note being called due. 

@Travis Anderson

It depends on what your LOC looks like, but most people will eventually start financing their deals, as leverage is the fastest way to grow and also remain liquid if another deal comes along. I'm happy to connect to give you some feedback on the financing side of things. Feel free to message me

Hi @Sharry W.

I'd be happy to take a look. Feel free to message me

Hi @Makenna Halls

I'm in Central FL, but I have a number of investors (we finance their deals) we work with in Jax, I'm happy to connect you if you think it would be helpful. I know the market well, so happy to answer any questions about the best strategy too. Feel free to message me and best of luck!

Yes, I am. I sent you a message.