All Forum Posts by: Nick Velez

@Troy Smith

To play devils advocate, always try for conventional first and use DSCR as a back up. While rates are somewhat close between Conventional and DSCR at the moment, you will have a pre-payment penalty with DSCR which is less than ideal. No pre pay DSCR options exist, but that rate will be quite a bit higher than conventional.

In most scenario's, you can use 75% of the projected long term rents to help offset the proposed mortgage payment. You will need to qualify for the remainder of the payment and your existing debts. 

@Joshua Post

If you are worried about not losing money, I would go with the least risky path which is definitely not flipping. Wholesaling carries less risk, but will require a lot of effort and funds to scale in most (but not all cases).

In my opinion, house hacking is the best way to get started. You are in an amazing market to do so and I am sure you can find a place where the the numbers work. Without house hacking, I would have never purchased my first home at 20 and would have not purchased the next few after that. 

If you are at all interested in house hacking, connect with a local expert like @Josh Green.

@Andre Calabro

Welcome to the forums! Central Florida is a great market and you can definitely find cash flow, you will just need to figure out what route is best for your situation. Whether you decide on LTR, MTR, or STR, will drastically influence where in Florida you look and what the numbers can be. I personally prefer STR's, but they will be the most capital intensive.

Whichever route you choose, it is extremely important that you have a team that is knowledgable about the specific strategy you plan on implementing. 

@Robert Kemp

I think Tampa/St Pete is a killer market for a house hack. 10/10 recommend connecting with @Josh Green, he is the go to man for anything in that market and an investor himself! 

The HELOC's do not, the HELOANS occasionally do.

 We are licensed in over 40 states including Michigan, pricing is relatively the same with most of our lenders :)

@Chris Lo

7.5% is fair but definitely not the lowest you will find. Rates are constantly fluctuating but I have been seeing high 6's for higher FICO borrower's as of lately. I agree with Caleb , steer clear of large online lenders, that are notorious for advertising extremely low rates just to get you in the door. 

@Caleb Drake

We have HELOC options for 1-4 unit investment properties, but title being in the LLC is the sticking point. There are a few fixed HELOC options that will allow title to be in a LLC, but you receive the funds in a lump sum.

I personally have cameras around the entire exterior of my STR's and I will never not have them. I have had guests try to throw a party and funnel guest's through the side fence to avoid the front camera's. While I am sure they are a turn off to some people, they are fully disclosed and and worth the peace of mind to me.

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.