All Forum Posts by: Steffen Cushing

pretty much any lender that follows regular conventional guidelines could do these, however the pricing with just 15% down is not the best and if you are able, likely better to put a little more down for better terms. 

there are a couple different lenders that our company is partnered with that can do them. they will not provide the full amount that could be taken out like a primary, but they are out there. 

yes, there are lenders out there that can assist. 

 i appreciate this question, as i was just looking to do this in Nashville area. Are you planning to manage and fill beds yourself or are you thinking of subleasing to treatment center?

hi Ryan, congrats on expanding your portfolio. I would look at using the HELOC as more of a back up, i think with HELOC and mortgage it would be difficult to find a profitable investment. if you are able to finance the purchase with fixed rate debt with your cash and returns are better than your current return of 5% on the high yield savings, this would just be my opinion.

not sure how much you are looking to take out of HELOC and cash down to buy house outright, but hopefully this example makes sense.

200k HELOC @ 9.25% = $1541 interest only payment

200k 30 fixed @ 8% =  $1467 principle and interest

i struggled with this idea for a while. unfortunately took me longer to realize the advantage. if you put money into a deal, that value increases then you can take money out of that original deal to fund another one. you have no money vested in the first deal and your funding another. my thought is, as long as the original deal is not a negative cashflow situation, then it works out. cycle repeats itself. 

example, lets say you put 40k into a deal, a year later you can get the 40k out with a loan and the rent still allows the property to cash flow, but now you can use the 40k for another deal that will cash flow. you got two properties with the original 40k invested. 

great insight from the other comments on the tenant/ landlord laws. researching and interviewing the property management companies in each area (i believe) is equally as important as the deal itself. If the goal would be to be as hands off as possible, having a good PM is key. 

Welcome Sean. im sure you will find alot of information and help in this community 

in terms of cash out refinance, you'll have to wait a bit for traditional financing "conv loan". not sure if you are occupying one of the units, but if you have good equity position you could look at a HELOC.

you can actually have more then 1 fha loan. if your plan is occupy the new property you could look at doing another fha loan (there are however certain requirements) or regular conventional loan (down payment would be based on the unit count) loan terms are more favorable on these types of products. i would save the DSCR stuff for when you exhaust being able to qualify (income wise) for regular loan products. hope this helps