All Forum Posts by: Nick Velez

@Kenneth Smith II

Hey Kenneth, 

A DSCR loan would solve the dti problem for you. It qualifies you based off the cash flow potential of a property and your credit score. Income and dti is not taken into account. With rising interest rates on the conforming side, they are a super competitive product. Feel free to message me if you have any questions!

@Felicia Cameron

Hey! Were these late payments on your mortgage or other items? 

@Nicole W.

I had a client go with the pipe relining and it was a fraction of the cost versus traditional methods.  They haven’t had any issues with it and it seems some companies will offer a 50 year warranty on it. 

@James Salazar

That is quite a situation! 
An alternative solution would be pursing a DSCR loan which does not take into account your personal DTI.

@Ryan Cummings

Hey Ryan, 

There are lender who will allow 15% down on DSCR loans and looser PITI reserve requirements. You can also can an exception to use AirDNA data as well depending on your experience and the property. Feel free to message me if you have any specific questions!

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.  :)