All Forum Posts by: Michael Nelson

75% will be the industry standard for max cash out.  However, 80% is typically available as a rate/term aka limited cash out refinance (cash out just being used to cover closing costs and prepaid items like taxes/insurance).

Your phenomenal DSCR is just a cherry on top. Lenders will base their max LTV on the appraised value assuming positive DSCR. However, they will not let strong DSCR drive them beyond their typical LTV caps.

Do you see strong comp support for a higher appraised value? If so, a second appraisal could be warranted.  I'd just make sure you have 2-4 unit properties that are superior that were not already used in the previous report and are in some way more comparable (closing in proximity or date of sale etc)

 Maybe try a BPO - this will be cheaper but not as detailed and should give you a general idea of the market - its much more expensive and time consuming to get an appraiser if your going to do multiple of them. 

For a guaranteed 10% down program you'll need good credit and 3+ experience but then with closing costs it will be more like 15% and then holding costs and such.  Just be sure you can afford your next project before jumping in.

Hey Michael! I work with investors that put about 10% down on BRRRR properties, I'd be happy to connect you with our lender.

Hi Michael,

10% down is widely available with good FICO scores and cookie cutter deals (rehab

What kind of deals are you looking at?

Hi Michael, where are you located?

We offer 100% financing on both purchase and rehab (loan size up to 75% ARV) but only in 10 states.

So if the location and the numbers are right, you can be as low as 0% down.

Yes, this kind of leverage does exist on the short-term purchase and rehab loan, and for reasonable terms.

Hi Michael,

With property prices appreciating, a 10% down payment can make it a bit more challenging, but there are still options. One potential route is using a FHA 203k loan for the purchase and rehab if you're okay with living in one of the units for a period of time. Another option is a hard money loan to cover both the purchase and rehab, which can then be refinanced with a DSCR loan once the rehab is complete. Many hard money lenders offer loans that include rehab costs, which could be beneficial for your BRRRR strategy.

Alternatively, if you find a lender that offers a DSCR loan with a lower down payment requirement, that could be another route to explore, especially if you already have positive rental income history. Be sure to shop around for the best terms and understand the refinancing process post-rehab to ensure your numbers work. If you had any more questions, I'd be happy to go through them, so feel free to DM me.

 Do you have 3 exits in the last 36 months?

Hey Michael, there's quite a few programs that I utilize for clients of mine who only desire a 10% down payment. Some are first-time investors, others are very experienced. 10% down payment is available for both ends of the spectrum depending on the deal numbers.

Shoot me a quick DM or email and I'd be happy to lay out the options available to you.

Hey Michael,

Local to you in Middletown here I would love to connect and chat more about this one.