All Forum Posts by: Paul M.

What does "assume mission driven" mean?  

How much does it cost to buy down rate per %?

Is there a way to passively track mortgage rates on 5+ residential apartment buildings?   They are generally not published or advertised, or at least not where I know where to look.  I can check in with my local bank, but I don't want to waste their time when I'm not yet serious about doing a loan with them.   Since these loans usually have interest rates that reset at 5, 7, 10 years do they behave like regular residential ARMs?   

I've found that Chase has great deals (almost no closing costs) for 5+. But last I check their requirements for LTV/DSCR was very strict. If you are going to put alot down it would work, or check their latest requirements.

Otherwise, just go through all the local/regional banks.    Banks with 2-10 branches are often good.    I don't know if credit unions can ever do this stuff?

Please update us with what rates you end up getting quoted.

I don't get the term "DSCR loan" I mean all loans for 5+ units are based more on the property than the buyer. Is a DSCR loan refer to doing that for 1-4 unit properties?

I'm not familiar with non qualified mortgages, I'd generally assume the less mainstream/vanilla the borrower, the higher the costs and rates, why would non QM instead be lower costs?    Who offers them?   I've generally only looked at local banks for local apartment buildings, and Chase also has often had good terms.    

I'm past the prepayment penalty period.

Why nonQM? Property exceeds standard DSCR/LTV ratios and PFS is good too.

Not 5%, but seems like there are some high 5% rates being advertised.  

I've got until end of 2026 of a fixed rate period on a 5+ unit mortgage, then it adjusts for another 7 year period. Has been 4.5% since 2020, any crystal balls on where rates will be in 2 years? I mean it stands to reason it will not get worse, as these interest rate cycles tend to take a long time, and some places already advertising under 5 something rates. I could also refinance before 2 years is up but closings costs for apartment buildings are expensive right? The DSCR and LTV are good.

Earlier in my life I only did 2-4 unit buildings, they always had rates fixed for 30 years, never had to think about impending rate resets.     It was explained to me that most commercial real estate owners do something with it in the first 5-10 years so it doesn't matter.   But I'm a buy and hold owner operator type guy.     

I do it myself.   I am a financial accountant (as opposed to tax accountant) so it is pretty easy.   Even if I wasn't I would still suggest doing it yourself, great way to monitor the business.   I listen to podcasts while I do the bookkeeping.

How does one get airbnb not to collect taxes on mid term rentals?

I don't per se agree with the reasoning above.   Often by having quality/unique features you attract better tenants.   Everyone has their own business model.   There are plenty of people who don't offer garbage disposals, laundry or dishwashers and make similar arguments.