I’ve been working with several lenders for DSCR loans, but I’ve found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate.

On the other hand, if you're aiming for long-term rental properties, getting prequalified with a lender specializing in traditional loans or DSCR (Debt Service Coverage Ratio) loans is key.

For instance if this is a $10M portfolio that's levered with loans totaling $9.1M, there's no equity that can be pulled but if this is a $1M portfolio with $100K of debt, its a different story.

I just re-read and realized you're talking about getting loans for lien position 2, is that correct?

It allows you to take advantage of a low down payment loan.

That doesn't seem right about having to chase your money - but would need a lot more info to provide a better opinion. also are you investing in one property and is your name secured or you giving an unsecured loan? 

Quote from @Jay Hinrichs:Jay, it does look like one of the strategies of this 711Rescue is to restructure the loan for their clients, but at 2x DSCR!

This vary heavily town to town. 20% down is great if buying strictly as investment but if you have a way of owner occupying I would explore that route and apply the 20% down to increasing value of property and instead using low money down loan. 

Investment Info:

Large multi-family (5+ units) buy & hold investment in West Allis.

Purchase price: $294,500

Cash invested: $144,000

This was my first commercial MF and off market deal. My agent ...

DCSR Loan