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19 December 2024 | 5 replies
2) Maintenance Reserves: So many factors here to consider!
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24 December 2024 | 17 replies
The property may not have any vacancies, but if it does, just make sure you have enough reserves to cover that.
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17 December 2024 | 20 replies
I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well.
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24 December 2024 | 9 replies
Expenses: What are the operating expenses, including taxes, insurance, maintenance, and reserves?
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22 December 2024 | 23 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 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).
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18 December 2024 | 5 replies
I'd consider doing some kind of cash out refi on the property at a number you're both comfortable pulling out, while still leaving $ for reserves to maintain the STR you currently have.
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20 December 2024 | 4 replies
ONLY when I pushed further, did they actually release those dates (and I received an email with the subject: Your reservation XXX was cancelled at property YYY), and those dates showed as truly open across both calendars.
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23 December 2024 | 14 replies
And always set aside reserves for the unexpected.always look at location, schools and is there an area that is gentrifying where we could take advantage of better appreciation Inspections are paramount.
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19 December 2024 | 82 replies
Most importantly please be sure to keep money in reserve.
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17 December 2024 | 5 replies
When they hear Wholesaler they think in the wholesalers who supply retail stores with Products.