All Forum Posts by: Nick Velez

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $270,000
Cash invested: $55,000

This was my first STR that I purchased in Gainesville Fl. It is projected to gross 48k but similar listings have brought in 70k the past year. I am projecting 2k net cash flow the first year but I will update this as the coming months go by!

How did you finance this deal?

DSCR loan through TheOneBrokerage

As everyone mentioned, your DTI will def come into play and if you are already at 40% you may be on a thin line. Another option would be a DSCR loan which won't take into account your personal income or DTI but will still let you do a cash out refi and vest in an LLC if you want to.

Hey Chris, I just closed on a STR in my Llc in Gainesville. Shoot me a message and I can give you the contact of who I used.

A DSCR loan would fully eliminate that issue as it's not based on your personal income but instead, on the ability for the property to cash flow.
If you want to go the conventional route, you should be fine as long as you have 2 years of tax returns.  I am assuming that when you file this year, you will then have those 2 years of returns? 

@Nick Terrano

I would recommend reaching out to Nick.  He helps a lot of out of state investors in jax.  :)

Gainesville is an awesome place to invest! 
Rents are high and if you go with the individual student leases route, your potential for cash flow increases dramatically.   Prices have appreciated here significantly the past year, but should still fall within your budget.  I personally live here and have for the past few years.  
Feel free to message me if you have any questions about the area! 

If you are looking for a conventional mortgage product, look into the Freddie Mac choice renovation loan.  It is a lot more complicated than a hard money loan but it’s an option! 

@Samuel Smith

Fannie Mae home possible (or home ready) allows you to use border income to qualify for a primary if you can document living with them in the past years (I think, double check the matrix). An alternative option would be a DSCR loan that Dosent take DTI into account and you can get a 30 year fixed. Feel free to message me if you ever have questions about those specifically!

@Ryan Moyer

Those are actually closer to the current value haha.  He purchased the one that he did 80k on in 2019 I believe for 140k (needed a little work).  The other he purchased early 2020 for around 180k I believe.  
They are both 3/2s under 1700 sq ft and only lightly remodeled.  Nothing fancy at all. 

@Ryan Moyer

This is my first one so I can't speak from personal experience yet but I know several people have some. One of my friends grossed 80k on a 200k house last year and 44k (listed 6/15) on a 240k house. So you can imagine his COC return was fantastic. I know a few people who list theirs with evolve and the returns are def less than that.