All Forum Posts by: Tanner Lewis

I think you are concerned about seasoning requirements for cash-out refinances here. As long as you don't finance the acquisition, you can start on a delayed finance post closing. This is essentially a cash-out refinance post-closing. 

It looks like DSCR would be the best option if you recently renovated it and have it rented out/about to be rented. Conventional would work too, but you would have to wait at least a year on seasoning, DSCR is only 6 months. Happy to connect if you want to look at it as DSCR

I think there are bridge loans available for owner-occupied deals. I would reach out to a conventional lender/broker to see, I just do DSCR and hard money so my requirements are very different.

You are likely blending PMLs with HMLs here, most PMLs lend on a relationship basis and most HMLs underwrite the credit profile and risk of a deal. 

The find a lender tool is a great tool to find hard money and DSCR lenders!

It really depends on the area for what the max leverage is. Most of the deals I have done in the market are rural per the USDA, but sometimes come back as suburban per the appraisal (especially if in an HOA). I normally go into a deal telling a borrower to expect 70% LTV and then if the appraisal comes back suburban then we can bump up leverage. 80% LTV is typical in suburban areas and 70% is typical in rural areas for DSCR lenders. I think going in to the deal guaranteeing 80% is a bit of a bold step, but it really depends on the address and the neighborhood characteristics.

Those look like pretty solid returns on the surface level, if you decide to go with DSCR, you can qualify the deal with AirDNA projected income even if it is rural.

Always pay them back and eat the loss yourself. I wouldn't use other people's cash if you don't have enough reserves to take a loss yourself. 

DSCR works pretty cohesively with hard money, especially when you use the BRRRR method since it allows you to increase leverage on the back end refi.

It's also worked pretty well if doing STR since you can just qualify with AirDNA projected income, even if you have no STR experience.

I think this may be better with a PML or an equity partner, it will be difficult to get a lender to be in a second lien position on a property. 

Hey Derek - I'm also local to the ATX market. I'd be qualifying this deal with AirDNA projected income + booking history (if not owned for 12 months already) and using the higher of yours and your partner's credit scores to qualify. I'll shoot you a DM!