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22 March 2024 | 9 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
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23 March 2024 | 31 replies
If they are live in flips, selling and putting the money else where might reduce some of the risk associated here.Option 2: Buy land without the house 100-150k set up a van/yurt/tiny home/similar temporary structure(50k).
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22 March 2024 | 21 replies
This economic stability can mitigate risks associated with investing in a single industry-dependent region.6.
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21 March 2024 | 7 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
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21 March 2024 | 2 replies
You're paying for a brand new build (with high build prices) but people will associate the age/condition with the existing old/leaky structure.
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20 March 2024 | 4 replies
Do you feel your association is adequately prepared?
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21 March 2024 | 0 replies
We'll also make sure to address the opportunity costs associated with Renting and House Hacking.Here are the numbers we are going to use in this blog.
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21 March 2024 | 6 replies
Try here, this is the website for the National Real Estate Investors Association.
21 March 2024 | 2 replies
Someone will point out that the 2-4 unit have a better track record of appreciation these past few years, but as mentioned I suspect that's largely being driven by the residential DSCR loans, the same way that being able to get a $200k student loan for an associates degree in basket weaving will drive up the cost of basket weaving education to $200k (and if the loans for the $200k basket weaving degrees went away, the price of a basket weaving degree would instantly drop, true or false?).
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21 March 2024 | 7 replies
There are costs associated with them moving that they do not want to pay.