All Forum Posts by: Nick Velez

Conventional loans are pretty cut and dry for the most part. If you are buying this as a second home, they should known the numbers did not work very early into the process. If you are being credited rental income from the appraisal, the value could have come in lower than anticipated and pushed your DTI up. Either way, the exact issue and remedy should be communicated to you clearly. If the numbers are truly close, there are always a few ways to shave some dollars off your DTI.

@Lisa H.

There is zero reason for an attitude shift. If you have plenty of assets, there are all kinds of way's to make the numbers work via sub 1 DSCR, STR data, ect. DSCR loans are often much easier to work with than conventional, my guess is he is just not comfortable with that loan product.

Best of luck!

@Lisa H.

That is a strange situation, does this lender offer DSCR loans? It is true that getting a DSCR of 1 can be challenging in some markets, but there are a plethora of ways around that. Depending on your income scenario, you may be able to even utilize a different Non-Qm product besides DSCR.

I personally would not work with anyone who treats you less than ideal.

@Steve Bebek

Hey Steve, I actually grew up in Ocala. Tower hill tends to be the cheapest option in Central Florida and they insure all of my properties. I know they allow 2 night minimums, not entirely sure about pets. I would be glad to connect you to the insurance broker I use.  

@Alton Johnson

Hey Alton,

I am assuming you are using a DSCR loan based on your commentary. A lot of lenders do have LTV reductions for properties that are located in an area which the appraiser deems a declining market, but that is in reference to property values and not STR data. A 10% hit to LTV sounds a little extreme and you should be provided a copy of your appraisal to verify whether the appraiser marked it as such, or if the lender is making an in house decision regarding the STR data last minute. The fact that they are not responding to you raises some red flags.

Feel free to message me, I would be glad to give my insights and see if there is a way for you to salvage the deal with the current lender. 

@Josh Green

4 unit in Hyde park, lets go!

@Tucker Bone

What route you go really depends on your goals and comfortability. I am going to assume you would be going FHA on the 2-4 unit, make sure your lender briefs you on the self sufficiency rule as that has been killing a lot of FHA deals lately. I think it would be much easier to cash flow once you vacate the property on a 2-4 unit versus a single family, but I would much rather house hack with friends in a single family versus random tenants you share walls with.

Whatever you do, make sure you have a rock star agent on your side, that can make the difference on getting your offer accepted in a hot area like Tampa. I personally would recommend @Josh Green as he has won our clients deals that they otherwise likely would have not won. 

@Ryan Tolley

There are a few unique HELOC and HELOAN products for investment properties now a days. Expect that to come at reduced leverage and higher rates. Depending on how much you plan on taking out relative to your first lien, I would do a blended rate calculation just to make sure that it does not make more sense to refi.

@Karina Woodward

This is a city/County ordeal. With Tenants staying over 30 days, you have to get an inspection done and do a bunch of unnecessary upgrades to the property to be within compliance. I have two STR's here locally and a primary that I was planning on turning into a LTR next year. With the new ordinance, I think I would rather sell then deal with the city/county. I have an article below that discusses some of the rules.

https://www.wuft.org/news/2021/04/26/city-of-gainesville-ado...

@Haley Sater

Hey Haley,

One of my local Realtor contacts, @Shawn K Hicks, has a great STR property manager recommendation. Feel free to message me and I will get you connected.