All Forum Posts by: Nicholas Covington

Hello, this is correct. 5+ units is considered "commercial" in nature even if they are residential dwelling units. There are lenders that will do 5-8(10) units for DSCR though rates will be a little higher than a 1-4 unit property.

If you are looking for options just based on the home itself and not your income then you will be looking for a DSCR loan. You can get up to 75% cash out and seems the rents are pretty strong to qualify for that.

How bad are we talking score-wise? 

Once the property becomes owner-occupied financials are normally going to always be requested. Since you are not renting it out, they have to figure out your ability to repay the loan. Especially for that amount of money, there will be very few state income options. Maybe try looking for a lender that will look at bank statements.

Many people go HML because they don't qualify for conventional financing. If you have the financials to qualify with your income then you should go conventional as the 15k rehab is very small. This is assuming you can get the contract to close in the appropriate amount of time needed for this type of program. It's going to be the cheapest option in the long run.

Normally loan amount is just one part where many can go to 50k but the value of the property should be around 75k. Are you buying properties under market value or they are only going to be worth 50k? Cause if purchasing for 50k and putting 20% down you are really looking for a 40k or less loan amount.

Sent you a message. 

Can't speak on every lender out there, but 99% of the time the answer is going to be no.

It's all in the numbers and how deep you want to get into them. We look at what we call a "blended rate," id google that, and maybe it will give you better insight on what you want to do. 

Basically its all about what you're doing with the money you are getting. Are you paying down 29% credit cards? Are you investing it into something that makes you 10% return? Are you just going to let the money sit? Lots of variables. Maybe take out a 2nd mortgage instead, unless you dont plan to pay that off anytime soon.

I have some options but you would be capped at 70% rate is between 11-13%. Which I guess is much cheaper than a credit card, but definitely more than a normal mortgage.