All Forum Posts by: Swaga Deb

I have a long term rental in La Quinta. I’ve been managing it myself, but starting to look for a property manager for multiple reasons (one being I’m not keeping up with rent increases). Was told the maximum increase is 10% per year. It’s a neighbor city, so probably not the exact answer you’re looking for, but thought I’d share. 

Check Craigslist, Zillow, Rent-o-Meter, etc.

We’ve found the best way to raise rent is:

• Determine market rent
• Share the proof with the tenant
• Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
• Often, they may volunteer a higher amount than you were hoping for.
• Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
• Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

Most DSCR lenders offer 70-75% LTV cash out. Since rates are fairly high on these loans high (7s to mid 8s for the time being) a lot of lenders are cutting the LTVs to meet the minimum DSCR, usually 1.00.

There are lenders offering 80% cash out on a 12 month bridge, with rates hovering in the 9.5-10% range. Is cash flow more important to you or using that cash to scale faster? 

Use DSCR lending, you can close in your LLC, don't have to personally qualify, can get as many as you want.

Ask your lender about a DSCR loan.

What is your main purpose? If it is to just scale and buy a new property. DSCR loans are easiest. You cannot get a HELOC if the property isn't a primary. You may have to pay off some debt first. You can get a HELOAN but most lenders will require a first lien if an investment. My suggestion is a DSCR Cash out. No DTI. You can get your equity and buy new property.