All Forum Posts by: Monte Rice

Check out debt service coverage loans. It is what I am using to scale faster than getting multiple traditional mortgages. DSCR loans are approved when the propery's income covers all the property expenses plus some. Usually 10-50% more than the debt on the property.

Wow! I never knew about this. So How do you use them to scale? If my rent is covering my mortgage and I am cashflowing about $200/month, would that be sufficient? Lets connect!

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Quote from @Jason James:

@Monte Rice if you have 20% equity and lived in the property for one year, you should be able to refinance your FHA into a conventional owner occupied loan. I would suggest that you call more lenders, to find one that can accommodate.

Yeah, I do not have that much equity yet since I put down the 3.5% minimum. If I did not have 20% equity would I not be able to refi?

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Quote from @Jay Thomas:

Hey Monte! Congrats on the duplex! Have you spoken to any other investors in your area? They might have a better insight with your market area. I would recommend possibly getting a SFR for a short term rental.

Yes sir I was looking into getting a conventional loan with my bank for airbnb and using the extra cash to put towards another deal, but with interest rates rising and a potential recession looming, I am nervous that my mortgage will be too high and the amount of traffic for my rental wont be as good. Maybe I am over thinking it. I have not been able to network with other investors in North Carolina, I wish I could meet some new mentors. I am always trying to learn more and more about real estate.

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Hi BP family, i am a newbie in RE and have acquired a Duplex using FHA. I am now looking to scale and get more rentals (preferably multi family) but I am open to SFR for use on Airbnb. What is the best way to scale? I wanted to refi out of my FHA loan from my duplex to go conventional but I don't know lenders will work with me even though I live in one of the units so its owner occupied as my primary residence. Any advice on what I should do next to scale? Also looking for any mentors or PLs that may be open to working with me.

Thanks in advance!

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Thanks in advance!

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Originally posted by @Matthew Meikle:

@Monte Rice ARV stands for after repair value. So, technically, all purchases would be made below ARV. I sense that you might need to pursue your education a bit more first. At least you're in the right place and asking questions.

Yeah but what im saying is: because they are only 25-50% below ARV, would that count as equity when they can be bought for 20K and they are worth 60K? If I bought at 20K wouldn't I have 40K of equity?

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Originally posted by @Matthew Meikle:

@Monte Rice The short answer is yes. If you can find deals with enough room in them, you can use hard money. It is done every day. While some lenders may be wary to work with a newcomer, others wont have an issue if the deal is a good one. As a general rule, they concern themselves more with the merits of the particular property than your credit.

I am usually finding properties at wholesale value that need TLC and because of this they are priced below ARV, would this count as enough room or equity? Do you know of any lenders I can reach out to?

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I am a noob with real estate, I was looking to invest in fix and flips and I wanted to see if there were lenders who will finance these deals for me. Is this possible? Are there any hard money lenders that can help me given the fact that I have no experience in deals?

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Hey all!I was wondering if there was anyone who could help me get started in real estate? I wanted to know if I should use the fha loan to buy a house, occupy for a year then rent it out and buy another? Are there any other grants for first time buyers? I would really and greatly appreciate any and all advice. I am looking to build long term passive income for me and my family.

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Originally posted by @Caleb Heimsoth:

Reserves are money set aside for when bad things happen to your property, like a tenant trashing it, the furnace goes out. Ac break, water leak, etc etc

I would recommend reading a lot more before you buy anything.

Real estate takes time, money and effort. Usually more money then people think.

Gotcha ! At this point I’m looking for funding options because I am still in college and money is scarce

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All Forum Posts by: Monte Rice

Monte Rice has started 6 posts and replied 16 times.

Post: Newbie with duplex looking to scale

Post: Newbie with duplex looking to scale

Post: Newbie with Duplex looking for advice to scale

Post: Newbie with duplex looking to scale

Post: Newbie with Duplex looking for advice to scale

Post: Financing options for newbies

Post: Financing options for newbies

Post: Financing options for newbies

Post: Young Investor Hungry for Advice and to get started!!

Post: 20 years old and don’t know where to start please help!!!