All Forum Posts by: Tanner Lewis

 I disagree; you can't be a jack-of-all-trades. A lender needs to know what problems their loan products solve and what they don't. 

I would avoid the flood zone. As a lender, we require flood insurance if the property is in a flood zone, which can eat into your cash flow if you want to hold the deal. 

Be careful with overbuilding; often, it does not increase the value as much as you would expect. It is more beneficial to build to market standards to ensure that you have appropriate demand when you sell. I've seen a lot of investors burned this way. It is not an issue if you are adding more square feet for your personal preference, but I would not expect an ARV that is as high.

In Austin, the taxes kill off a lot of cash flow. From what I have seen, flipping and STRs are the best way to make deals work here, but the primary objective is appreciation, not cash flow. 

I suggest working with @Jordan Moorhead and his team. They primarily work with investors, and most of their agents are investors, too. 

Yeah, that does not sound like a standard process. I normally quote people based on what credit score they expect to have and send a fee sheet breakdown. Most lenders will do a hard credit pull before presenting a formalized term sheet, but that is after a property is under contract and your offer is accepted/you submit a full application and send in a credit authorization. 

20% down with no STR experience is pretty normal on the market, but you will likely be using a haircut AirDNA projection instead of the full 100% to qualify you.

Hey Elmer - I'm looking to connect with STR realtors, shoot me a DM!

No, we would not need to see property income. The deal can be underwritten using either in-place rent or the 1007 market rent (from the appraisal). For refinances (cash out or rate term), the property would need to be leased out prior to closing, and we would take that into account with the underwriting.

No DSCR loans do not look at your DTI at all. This means DSCR lenders would not look at your W2 income or the income of other properties in your portfolio.

I'd approach it with a DSCR loan. You could qualify off AirDNA projections with 20% down, which is $36,600 down given the $183k sale price

We can do STRs in the US and Puerto Rico