All Forum Posts by: Victor Ong

@Upen Patel my primary is a 4plex and my other investment properties are all 2-4plexes. My issue is that for every gross rent dollar I receieved will only yield me 32cent of usable income based on DTI. At my current status, I could only use stated income for acquision, and have limited means to cashout refi after improvement. Most hard money options I researched offer short term financing for flip and sell deals, while I intend to hold for long.

My current mortgages on my primary and investment properties already exhausted all of my usable income based on DTI calculation. I still have liquid capital for my next BRRR, but I would need a lender who could cashout refi so I could move on to the next one. I learned that commercial lenders use DCR instead of DTI, but I am not sure if they are willing to lend against 2-4 units since the category is in residential. What are my options out there? I am pretty sure that I am not the only who is hitting the speed bump with DTI here.

Hi,

I am in escrow on a 4plex property in Los Angeles and would like to run a sanity check with the experts in this forum on my analysis. Please fee free to comment.

Contract Price: $532,500
Closing Cost: $10,650
Total Cost: $543,150
Gross Operating Income: $49,488
Net Operating Income: $28,587
Cap Rate: 5.26%
GRM: 10.98

Rehab Cost: $150,000
AFR: $800,000
Pro Forma GOI: $67,200
Pro Forma NOI: $39,141

My primary goal is to gain the net equity increase based on the AFR through rehabbing. My second goal would be holding the property for long by cashout-refi through Interest Only 10/1 loans. My ideal vesting period would be 7-10 years.