All Forum Posts by: Nick Velez

@Josh Green I highly second Josh Green and his ability to connect clients with great vendors! 

@Sean Starkey

DSCR lenders want the long term rents on the appraisal to be equal or higher than your PITI on the subject property, which is a DSCR of 1 or higher. If you have at least 1 year of experience, some DSCR lenders will let you use Airdna data instead of the long term rents.

@Sean Starkey

There are definitely DSCR brokers out there who can beat that. 2% origination is pretty common with DSCR loans but you should be able to find rates in the high 7's with no points assuming you have good credit. If your property does not have a DSCR ratio above 1 then expect to be in the 8's for sure. There are a lot of properties out there that will struggle to ratio with long term rents but would absolutely kill it as a STR. It is up to you if you are fine not having a cash flowing back up option but you know what they say, date the rate and marry the house!

@Brian G.

Hey Brian, that seems a little steep. I have seen quite a few 2nd home quotes lately and they end up around 7.125 with around 0.5 points for the rate.

This is with a 740+ score and 10% down. 

@Sean Peabody

DSCR loans are likely the easiest way to go about this if the property is already rented and cash flows. Keep in mind that while they are non-qm loans, a majority of the time they still show up on your credit report. While you are vesting in the LLC, you are still a personal guarantor for the mortgage. Some lenders will promise you that their loans don't show up on your credit report and it is entirely possible that they don't report them, but I have seen more times than not that they eventually get reported.

@Valentina Calla

I have heard good things about Joe Manausa up there! Their office number is 850-366-8917

@Mariah Myers

Hey Mariah, why did your down payment increase from 20% to 30%?

Thing have really tightened up on the non-qm side but you should still be able to find lenders who can go 20% on DSCR loans. As far as using short term rent over LTR, lenders typically want to see that you have experience with STR's or the property itself has STR history. On the flip side, I have a lender who will use a lease over the 1007, as long as its not larger than a 25% variance from the 1007. Most of the time, that extra 25% is more than enough to hit a ratio of 1.

This is the story of my life right now! I have contacted 6 different agents and my quotes are ranging from 8-12k if I don't replace the roof and 6-8k if I do. The property was built in 1970 and is 1.8 miles form the coast. Back in December, I closed on a STR that was built in 1970 and is located in central Fl. The roof was over 15 years old and insurance did not require a 4 point inspection. My premium on that property is only 2k a year!

When running my numbers, I expected my quotes to be higher than my existing in Central Fl due to the proximity to the coast but did not expect a 4-5x increase.  On the bright side, the numbers can still work with these high insurance rates and will be even better if this Florida insurance issue gets figured out!

Just want to add that DSCR programs are available for 5-8 units as well!

@Garrett Jennings

I think where in Florida you decide to house hack will play a major part in this. In college towns, house hacking should be extremely easy with long term tenants and you ll be able to collect a premium.I have been house hacking in Gainesville Fl for 4 years now and have never once wondered if I could find tenants.