All Forum Posts by: Rosie Small

Hi Satya, you do have a few options - HELOC is probably not going to be one of them on an investment property. You can do a HELOAN, which is a 2nd, but it is closed-ended, meaning you can't draw against it repeatedly the way you do a HELOC. Its possible there are still lenders out there offerring HELOC for investment property, they are few and far between.

DSCR cash-out is not a bad option, unless you have a really great rate you hate to refi out of (i get it).

I do have one lender that will do DSCR for a HELOAN as well (2nd lien position on investment property), that could be a better fit than a cash-out refi. You also could try private money or hard money 2nds to avoid the income / DTI calculation and still get a 2nd mortgage, but that will come at a hefty price tag.

Let us know if you find a HELOC option for investment property, i for one would LOVE to be able to offer it to my clients, they're simply non-existent at the moment from what i've seen.

@Rosie Small

This is the situation many investors find themselves in right now. "I have a great rate but I can't access my equity."

In the current lending climate you will have a hard time finding a lender willing to give you a second position note like a HELOC on your rentals. If you do decide to refinance, my suggestion is to take the LOWER pre-payment penalty with a higher rate. Instead of, a lower interest rate with a larger PPP. That way if rates were to drop you can refinance without fees being tacked onto your payoff letter.

Yes you can do a second mortgage on investment properties. Max CLTV is 80%. Minimum loan amount is $100,000

@Rosie Small

How much you looking for and for how long - I know some who will do it but the rate will be in the mid teens with several points on top

@Rosie Small

You may need to show at least 2 months of payment history from the tenant.  As long as the lease payments are coming in, you should be able to finance this with relatively minor issues.  I would even leave the fact the tenant is sub-leasing out...

Cheers!

Hi All,

My one unit is in the process of being rehabbed. When marketing the property for tenants, is it acceptable to market the property and not show pictures of the inside until everything is done? I would specify that the unit will be ready to be moved in after the rehab. For pictures, is it okay to use the front of the house in the meantime? I want to get tenants applying while the unit is being rehabbed to avoid a more extended vacancy.

Let me know your thoughts!

I don't think they'd have an issue with this arrangement. They will be looking at the long term lease that you have with your renter for their DSCR calculation. As long as you qualify on those terms, what your renter does with the property after that is between you and the renter.

Agreed. They will use your long term rent for the DSCR calculation. So long as you have a long term lease you should be okay with a DSCR lender.

Your records show that you are still in a long-term rental contract so I would say no.