All Forum Posts by: Tanner Lewis

Hey Nicholas - I think you can just assume the loan if it is conventional. But if you change title, but not the loan, you should watch out for a due on sale clause

Hey Rama - I would reach out to @Jordan Moorhead, he is THE investor friendly agent in Austin. He also is the host of one of my favorite meetups in the area. 

Hey Shivani, since you are looking to qualify based on the property's rental income, I suggest looking into DSCR loans. They are based on the DSCR ratio, which is rental income/(principal + interest + taxes + insurance + HOA).

If you are looking to do a complicated structure, ex. wyoming holding company. Make sure you do it through a registered agent service. otherwise, your name will be on all of the paperwork going through the SOS website. 

It sounds like you would be looking for a DSCR loan. The income qualification for the property is off of the property's cash flow. You would need to put 20% down for something like this.

Hey Jake - most DSCR loans are in the high 6's at the moment!

You can just have a lease addendum to extend the stay. Also, depending on the lease, it may already be rewritten up to have it continue on as month-to-month (or week-to-week). 

Since you are here on the BRRRR forum, the biggest thing is cash-out seasoning time. Conventional loans have a 1 year seasoning for a cash-out, and most DSCR lenders do cash-out refi with 6 months of seasoning. There are also a few options out there with 3-month seasoning requirements.

Yeah, you can do it with hard money or DSCR loans. Just talk with a loan officer or account executive first so you know what is eligible for them. Typically you can get a deal under contract and then go looking for financing. A few hard money lenders can close in as fast as 48 hours, which helps compete with all cash buyers.

Hey Donny - I would advise against building your first deal unless you have extensive GUC experience. You can do it all cash, but if you are looking for financing, that will be difficult without GUC experience. 

Another thing I see is investors building properties that are ineligible for financing. I have seen a few tiny home rural STRs that are really tricky to finance, even with a DSCR loan.