All Forum Posts by: Yixiong Pan

Hi, Yixiong. I might be able to help. I’m a real estate agent that specializes in distressed properties.

Hi Yixiong-

Congrats on building up your portfolio! Have you looked into DSCR loans? They might be a good fit for your situation since DTI isn't applicable—underwriting is based primarily on the property's income, not your personal finances. Happy to connect and discuss further if you'd like.

Also, here is an article that explains how DSCRs come into play with BRRRRs: 

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

@Yixiong Pan - If others have the cash to put into deals it sounds like you could form a JV partnership with others where they bring capital and you operate the deal and come up with a split of equity of the purchase. If you have questions about the ability to obtain loans, you'll want to make sure whomever you partner is very "lendable" with banks. I agree with River that DSCR loans are a good option. The other option I would consider is regional credit unions that hold onto mortgages/loans and don't sell them to the secondary market - they are "portfolio lenders" and have the ability to be more flexible with their terms. Good Luck!

A property manager can make the process easier by handling the day-to-day coordination, but the 10% fee might not be worth it if you’re comfortable managing things yourself. It really depends on how much time and effort you’re willing to invest. If you trust your contractor and can stay on top of the project, you might not need a property manager

@Shane O'Neill Boulder and East Knoxville. You are in two completely different worlds. I don't really have anything to say but good luck to you.

@Yixiong Pan, do you have experience managing rehab projects that are local to you?

You already realize that trying to handle this remotely is adding complexity and risk. So, if you don't have experience managing rehabs, it doesn't sound like it would make sense.

A contractor has different interests from you. So, you can't simply trust them to handle things on your behalf and often communication is challenging especially if they choose to make it that way. 

If you want to rehab in that market, perhaps spend some time networking there and maybe you will find someone whom you can partner up with who has experience in the local market and with rehabs. Having someone local who has skin in the game and experience would be valuable. This also allows you to be involved and gain experience for the future.