BRRRR - Buy, Rehab, Rent, Refinance, Repeat
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 20 hours ago on . Most recent reply
Has anyone had success getting a DSCR loan based on the as-is appraised value rather
I'm considering buying a rental-ready, off-market property. It'll likely appraise around $385K, but I may be able to purchase it for $270K–$300K. Since it doesn't need any work to rent, I'm exploring DSCR loan options and ideally looking for 80% LTV based on the appraised value, and not just the purchase price. So it'll function more like a BRRRR without needing a rehab.
Has anyone structured a deal like this successfully? Any lenders you'd recommend who do this? Would love to hear your experience or suggestions.
Thanks ahead!
Most Popular Reply
Hey Emmanuel
Have you considered treating this as a modified-BRRR strategy? Attack it with a small rehab-bridge loan (coat of paint, fix some drywall, clean up landscaping/curb-appeal, etc.) to increase leverage and reduce your down payment.
Then refinance it after a couple of months at the true "ARV" where you should be in position to at least rate and term at 80%. It could ensure that you've minimize your cost-basis while getting what sounds like a good property that should give you some good equity for a long time.
That seasoning period should suffice in letting it 'appreciate' to its actual value and put you in a great position.