All Forum Posts by: Tychua G.

@Joe Villeneuve 1-For argument's sake, let's say AZ or NY.
2-I tend to agree that BRRRR would be difficult in this environment, how would you approach differently if not this method?
3-Can you expand on this, what is the ideal scenario that will motivate you to move forward? (How heavy does the asset value factor into your final decision?)
4-Acceptable upfront risk (capital) to hold below market asset.  Focusing on LT equity play where cashflow is nice but not necessary.

When you say focus on dollars, is that viewed as the monthly cashflow or the valuation of the asset?

Appreciate your feedback.

@Joe Villeneuve I'd like to be as state agnostic as possible so the portfolio can be flexible. I think the BRRRR strategy is still relevant even with the current elevated rates with the intention of a cash out + rate/term refi down the road. Target time frame is 2024. Goal is to reach undervalued assets of $2m or more on year 1. I think for your last statement I'd agree in a low rate environment. For now I am more inclined to focus on equity and thus the emphasis on the price of the underlying.

@Stephanie P.What are the typical loan sizes for each tier that have point adjustments?

How is the prepayment penalty calculated?

@Julien Jeannot Appreciate the details and the walkthrough.  I assume these properties were acquired years ago when rates were in the 3's and 4's.  Given the current climate, would you have the same playbook when 30 year fixed mortgages are in the 8% range?  If not, I'm curious what you would do differently.

@Alecia Loveless  I think you hit the nail in the head with this nuanced answer.  I think a lot of times situations fall in the gray zone and the priorities of an individual.  I'd like to expand on your take further:  If you have achieved your desired cash flow and have the ability to retire, would you still house hack?  If yes, why?

@Stacy Raskin

This is quite the product. What is turnaround like to close on a DSCR? What can one expect for lock-terms given how much simpler this is?

@Kenny Simpson The latter, I believe the main bottleneck for scaling a portfolio using Conventional products stem from accruing recurring mortgage debt payments.  I'd like to know if there are ways to offset this.

@Stacy Raskin

Appreciate your in-depth answer.  To followup, let's say we close on a purchase and rates drop the next year, are there penalties if I decide to do a cashout refi (pre-payment, program adjustments or otherwise)?

Correct me if I'm wrong but UW bypasses Personal returns, DTI and focuses strictly only on LTV, FICO and Reserves?

@Robin Simon

How many months of rent is needed to qualify for a DSCR Cashout rental? Besides cashflow, what else is the Underwriter looking for?