All Forum Posts by: Tanner Lewis

Check out Forbes' recommendation for fast closings and reach out via email if you want to make it 48 hours: https://www.forbes.com/advisor/mortgages/real-estate/best-ha...

The hard money loan would fund the purchase and the rehab, so it would just be one lien. You can refinance conventional if you really want to but you would need to wait a year for cash out as opposed to 3-6 months with DSCR

Hey Ed - this one wouldn't qualify with DSCR if one of the houses is your primary (assuming all are on the same tax parcel). If they are on different tax parcels, I will use DSCR for the non-primary deals and then FHA or UDSA (assuming it is rural) for the owner-occupied one.

Hey John - what LTV are you looking for on this deal? With a DSCR loan you should be able to do 80% LTV on a rate term refinance , but anything above that is going to be very unusual for the market, even for long term rentals.

Yeah you don't need to wait if it is a rate term refi. The lender just doesn't want a EPD (Early Payment Default) on the loan if they sold it to a loan buyer like Fannie/Freddie. I think this is a conventional thing since DSCR, you can rate-term refi with no seasoning.

I would close in cash/with a HELOC and then do a refi with a hard money loan. It's hard to use hard money on these since you typically need an inspection of some sort.

I always think installment loans (like hard money) is better than revolving credit debt. Main thing here is your credit utilization rate: if you want to refi down the road, it is best to keep credit utilization as low as possible to keep your credit score up. If not, you may start a rehab with an 800 credit score and have a 550 when it comes time to refi. 

The main thing I would look for is breadth of underwriting guidelines and customer service. A lot of borrowers shop lenders for days to find the "lowest rates" just to find out 3 weeks later that the lender cannot perform on their promise. I think it makes sense to go with a reputable lender you know can close your deal and make it a smooth and seamless process, rather than chasing the "cheapest option". 

The BiggerPockets' "Find a lender" tool is a great option for connecting with reputable, investor-friendly lenders. 

Hey Andrew - if you want to leave your W2 now, you can still qualify for financing on deals. Don't see that as a barrier to quit a job you hate! DSCR and hard money makes this pretty easy, but you would still be expecting to put down 20% on DSCR and a bit less on hard money.

Hey James - going DSCR for a STR deal is pretty simple, and a lot of the time it is even easier than doing a LTR deal with DSCR. This is mainly because we know the cash flow numbers upfront with a STR, since you can use AirDNA projected revenue to qualify a deal and don't have to wait on the appraisal to give us LTR market rent.