All Forum Posts by: Steven Garza

Echoing the above. You can also do a cash out refi with a DSCR (I'm in the process of doing that now) and reclaim some of your capital (75% LTV is what I have). Then you can decide if you want to retain as a rental property (my plans) and/or sell it when the market heats up.

Steven, if your HML will not extend for you, I would recommend a 0yr PPP DSCR loan. It will be a hire rate that market average, but at least it will be principal and interest bearing. And, you won't have to worry about how long it will take to sell. Just a thought… happy to connect!

Hey Steven. Have you asked the HML for an extension? Most HMLs I deal with will do that; however, they will probably charge an extension fee.

First off, congrats on making it half way through your first flip!

Agree with all the points Ty has already made above as well. I would also say it depends on your goals and what your business currently needs. Do you need more quick capital? Can you afford to hold onto the property even if it sits vacant? Even if you BRRRR it, you might not get as much out of it as you could flipping it. I'm not familiar with the Scottsdale rental or retail market so that might also impact your decision. There's no right or wrong answer here and will highly depend on your current situation. There are properties I wished I kept but needed to sell at the time, (especially in the beginning of my investing career) and vice versa. If it was my first, I personally would flip it. Focus on building up more capital before holding onto rentals even if you BRRRR them out but every investor is different!

Awesome man! Sorry, it is a lot. Take your time and I am here to help!

Hey Steven,

You must consider a number of variables before making a decision. First, look at comparable rental properties on websites like Rentometer or Zillow to get a sense of the average rent you can charge. This will help you research the Scottsdale rental market. Next, figure out how much the entire rehab will cost and contrast it with the possible rental income. Make sure the renovation significantly increases value in order to support a higher rent. Subtract all costs (mortgage, property taxes, insurance, maintenance, property management fees, and HOA fees) from rental income to determine the estimated monthly cash flow. It takes positive cash flow to make a BRRRR investment profitable. Examine the post-rehab value (ARV) of the property to determine whether you can refinance and extract most or all of your original investment. Speak with lenders to learn about the conditions and criteria of refinancing. Examine the terms of financing. for keeping a rental property as opposed to selling, and take long-term investing objectives into account. For information about Scottsdale rental properties, check the HOA and municipal laws. Finally, in the event that the rental market underperforms, have a clear exit strategy in place, such as selling the property.

Hope this helps! Please feel free to reach out to me directly if you have any other questions or if you just want to discuss. 

P.S. I am a loan officer if you need assistance with any of the financing things I mentioned above!