All Forum Posts by: Tanner Lewis

Hey Adolphus - with DSCR you would need to be a personal guarantor, but it would not report to credit (as long as it is in an LLC and you don't go past 90 days late on mortgage payments).

The only nonrecourse loans out there are pure commercial, which carry a higher rate than DSCR.

Hey Jon - you can just use a DSCR loan for them. You can BRRRR a STR (AirBnBRRRR) or just buy one as an acquisition. You would just qualify the deal with AirDNA projected income or use a STR1007 to qualify. They're pretty easy, and honestly even easier than LTR acquisitions since you are not reliant on the appraised market rent (when using AirDNA to qualify).

True - I suggest getting a condo questionnaire upfront if you are unsure and reaching out to STR/condo-friendly lenders prior to putting it under contract.

Hey Dilcia - did your current lender/mortgage broker give you a list of stips, or are they just telling you they can't close yet? If they are pushing closing back, I assume they found something in one of their last reviews that needs correcting.  

Hey Jacob - In Austin as well! Why not do a cash out refinance on one of these deals? It would be a much better rate, it would be a fixed rate (not variable), and it would amortize over 30 years (no balloon payment). Most lenders do not offer HELOCs on investment properties, so it may be difficult to find this product. 

With a cash-out refinance DSCR loan, you would be pulling out about $300k out of property A, and $73k out of property B with rates in the mid 6's at the moment

Hey Kyle - an investment HELOC is not really a product in the lending space right now. If you want to use the property's income to qualify the loan, then I would look at DSCR, but just know that it is a mortgage. The other option is to use a hard money loan on the deal and use the proceeds for another deal. This can be done in 1-2 days and would be about 60% LTV. It would be higher interest, but there would be no prepayment penalty.

House hacking with an FHA is a great option, with that loan, you can get up to 4 units and also use the income from the other units to qualify with the back and DTI. In my opinion, I would just plan to reduce your living expenses so you can save up more for your next deal, it doesn't necessarily have to cash flow for it to be a good deal

Hey Mary - I think a lot of the refinance options will have too low of equity to pursue a cash out refinance. The STR deal could be the best option if I understand your situation correctly, except I would probably do this as a cash-out refi and just use the combination of booking history + AirDNA projected income to qualify (if not operated as a STR for a year). A DSCR loan on this deal would have a much lower interest rate than a business line of credit.

Private money lenders work best on rehabs given the quick entry and exit times on deals. If you are looking to hold long-term, I would bring on a private lender for the rehab and then refinance and pay them off.