All Forum Posts by: Nick Velez

@Radley Buxton

I have lenders who will allow us to use Airdna data but the borrower needs to have experience with owning a STR of the property needs to have a 12 month history. Down payments currently are 25% down and we can request an exception to 20% which they have been granting lately.

Hope this helps!

@Josh Green

Josh is the realtor I would recommend in Tampa! I am sure he can point you in the right direction based off your current goals.

@Brec Bassinger

I have been shopping around for quotes near the coast and its all over the place. From my experience, age of the roof and the building are major factors. Roof's over 15 years are a no go with most carriers and buildings over 50 years often require updating to the plumbing and electrical. 

If this will be a STR, the list of carriers gets much smaller. Insurance in Florida is a mess right now and not many insurance agents are hopeful that anything will drastically change in the near future.

For a 54 year old house with a 16 year old roof, my quotes ranged from 8-12k. if I were to get the roof replaced, I would be closer to 5-7k. If you are getting a condo, it should be much cheaper.

@Bridgett J Bell

Lenders need to know that you are on time with your mortgages hence why they ask for mortgage statements. While it is in an LLC, you still are guaranteeing the note so your credit worthiness is important.

As far as personal bank statement's, the cash out proceeds should be sufficient for reserves so I am not sure why they are asking for personal statements, unless rent receipt is deposited into your personal accounts. 

@Louis Louisius

The second home route would be the only way to stay ay 10% down.  As you mentioned, you would need to occupy this property at least 14 days out of the year. Wesley chapel is not too far from the water so perhaps you can make it a little vacation!

Either way, you need to be working with an investor friendly agent if you are purchasing out of state. I would recommend you chat with @Josh Green. He has helped several out of state investors purchase properties in the around Tampa area.

@Jordan Hall

If you go on facebook and type in Gainesville Fl, Bigger pockets investor meet up, it should pop up!

@Luis De Jesus

Hey Luis, I am actually from Ocala, I lived there most of my life!

I have heard that some people are crushing the returns on STR's near the new world equestrian center. I think the 1% rule overall in Florida is extremely hard to come by.

@William Arnold

Hey William, this is a lender we broker loans too. This product is no longer available from them with the most recent tightening in the Non-Qm market. They were one of my last lenders to offer 15% down.

@Bernard Joseph S. @Danny Jimenez

Correct, I meant as you shop around for different lenders, make sure they will lock your rate. There are a lot of DSCR lenders who will not lock you right now until you have the appraisal back or are clear to close. This is just asking for trouble in today's rate environment.

There is no lock and shopping on the Non-qm side that I know about. If there is, we need to add that lender to our roster lol.

@Danny Jimenez

DSCR loans are my favorite loans to work with but there are absolutely a lot of terrible lenders out there. As you shop around, make sure your lenders will actually lock your rate. When things get iffy in the non-qm space, the first things lenders like to do is suspend locking to hedge their risk (I have even heard of lenders unlocking borrower's). If any lenders have a history of doing this, I would steer clear. Make sure your lender also has a back up solution. If you have to have a DSCR of 1 and you come back at .9, you're dead in the water. Most brokers have access to plenty of lenders that will go no ratio in the event that the 1007 comes in low which is an important safety net.

Each lender is going to have varying guidelines based off their current appetite for risk. These guidelines are ever changing due to how crazy the market is and it's important to make sure the guidelines you are being told now are still in effect when you go get into contract a month later. For example, I was going to utilize a 15% down DSCR on a property not too long ago. The week that I planned on locking it up, our lender let me know that 15% down was disappearing the next day and if I didn't submit my loan same day, I would be out of luck. If I wasn't in constant communication with our lender's I would have never known the product was no longer going to be offered at this time. You can save yourself a lot of headache by following up to make sure the product you want is still available.