All Forum Posts by: Zhenyang Jin

I am a software engineer working in Bay Area. I found out that:

Case 1. When doing business loan for 4+ units multifamily, my W2 can not be used to calculate DSCR. For the top tier area like Palo Alto where cap rate is 4.0%, LTV can only be limited to 40%~45%. For the 1.5M downpayment, the target price is only 2.5~2.73M.

Case 2. When doing residential loan for fourplex, my W2 + my partner's W2 can be used to calculate DTI. LTV can reach 70~80% even the cap rate is only 4.0%. For 1.5M downpayment, the target price can reach 5~7.5M if DTI is allowed.

Due to the big difference on target price, I raise this topic to confirm whether my understanding is correct or not.  I wonder whether expert can confirm this?

Because my DIT is low, maybe Case 2 for fourplex is my preferred loan type than Case 1 if I want to invest locally. Any advice is welcome.

 Thank you, Jaycee.

@Brittany Minocchi Thank you for the feedback.

Hi all,

I under contracted one 6 units multifamily in Bay Area and doing commercial loan with Chase. 

The financial of property is good:

DSCR = 1.3; LTV = 45%;

Both my liquidity and net worth passes Chase's test. FICO: 800. Meanwhile, I have 10 units management experience. 

However, due to keep purchasing real estate, my DTI is high and close to 50%. Chase told me that they will focus mainly on the property's financial and borrower's net worth and liquidity. Regarding borrow's DTI, Chase thinks that this item is not that important.

I wonder will my high DTI impact the loan underwriting?

Regards, Clark

Thank you, Ashish.

Hi Chris,

My purpose for using a DBA are:

1. Want an easily remembered name without LLC suffix so that tenant can refer it easily to their friends.

2. Separate different project under one LLC.

However, I don't want to introduce additional complexity about paperwork and confusion on banking and accounting.

I am registering an LLC in CA for multifamily investment. I wonder whether DBA registration is recommended. My CPA and banker told me this is not needed. I am not sure whether there are some drawbacks when not registering a DBA. Has anyone met an issue when not registering a DBA.

Basit, thank you for your reply.