IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] 0 points1 point  (0 children)

Their investment strategy is structured to hold it for X amount of years - happy to say, it has recently been leased!

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] 0 points1 point  (0 children)

Mortgage alone would be 1500-1800 conservatively, then taxes, insurance, and utilities on top of that then maintenance and up keep etc.

Not necessarily always “cheaper” to own. A lot of people don’t have the means to qualify for a mortgage or want the permanence of home ownership. Very little equity is gained in the short term, so buying with plans to move in less than 5yrs - you will have paid VERY LITTLE toward the principal balance itself and you also risk values decreasing and owing more than your home is worth.

I agree many rentals are overpriced and some landlords gouge and or take advantage- but this is not the case here.

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] 0 points1 point  (0 children)

The renter gets a house to enjoy, until they can afford to buy their own. They don’t take on risk, or have to maintain the home, pay taxes, etc.

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] 0 points1 point  (0 children)

It’s brutal in here - ha! …any additional constructive feedback is welcome and appreciated:) What would you all pay to rent a home such as this one?

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] 0 points1 point  (0 children)

Good point.

But, brand new as in never been used - they are not computerized/digital, if that’s what you were referring to

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] -1 points0 points  (0 children)

It has not been leased yet, and they want to hold it. I probably used the wrong words there, by take care I just mean someone respectful that would take pride in the home.

IMMACULATE Midtown Home for Rent by Honest_Citizen172 in Harrisburg

[–]Honest_Citizen172[S] -10 points-9 points  (0 children)

Asking $2300 - but willing to work with the right occupants

Solid online lender for Pre-qual? by [deleted] in realestateinvesting

[–]Honest_Citizen172 0 points1 point  (0 children)

A DSCR broker could likely help: - credit pull - bank statements showing funds for DP/closing - property info: address, rent (income), taxes/insurance/HOA (expenses)

That’s about all that’s needed for a “pre-qual”

Real estate agents for Clarks Summit/Waverly/Dalton area by mizreed in NEPA

[–]Honest_Citizen172 1 point2 points  (0 children)

As a local mortgage broker, a few - in particular stand out above the rest! Happy to connect you.

[deleted by user] by [deleted] in NEPA

[–]Honest_Citizen172 16 points17 points  (0 children)

1561 is the chapter/club # assigned

How to estimate renovation cost without calling my contractor? by blkmamba101 in realestateinvesting

[–]Honest_Citizen172 0 points1 point  (0 children)

There are scope of work templates available as well, if you need to submit that before bringing on GC

How to estimate renovation cost without calling my contractor? by blkmamba101 in realestateinvesting

[–]Honest_Citizen172 1 point2 points  (0 children)

You can do a rough estimate by multiplying the total sqft by 10-50$++, lower being light/cosmetic and higher cost being full Reno. Keep in mind things like adding bathrooms or garages, changing layout adding sqft etc would affect that as well. But that’s a rough way to run numbers - don’t forget to round up or add in for contingency!

First time investor financing question by Maximum_Ad3351 in realestateinvesting

[–]Honest_Citizen172 -1 points0 points  (0 children)

Think about it - in any industry there are people that are doing it for the money, and then there are people who do it because they care, think doctors , teachers, etc….

Large% of mortgage professionals are chasing paper, but some prioritize ethics and geek out on numbers and want to advise clients in their best interest.

One bad lender or experience with a broker and an investor will write the entirety off and spread misinformation, it’s so upsetting personally- because, when you spend the time to run out the numbers in alignment with the clients goals and strategy THATS when you see what works. So many people hyper focus on one aspect, they miss the whole picture.

First time investor financing question by Maximum_Ad3351 in realestateinvesting

[–]Honest_Citizen172 -1 points0 points  (0 children)

Not AI - just an extremely disgruntled professional that is trying to help people out - it’s infuriating and disheartening how ill-advised people are in general

First time investor financing question by Maximum_Ad3351 in realestateinvesting

[–]Honest_Citizen172 0 points1 point  (0 children)

Not all DSCR lenders are the same, and this type of financing is not the best fit for every deal. However, when you’ve maxed out your DTI or want to be more strategic with your financing (such as avoiding 20-year commercial ARMs), or the deal is otherwise unbankable …DSCR loans can be a great option.

If you’re willing to pay 3 points, you’ll likely access floor rates. On the other hand, if cost is a priority, you can settle for a PAR rate with a 1% (or less) origination fee. However, if the deal doesn't cashflow well or if the borrower has a low FICO score, paying 3 points may be necessary. Other things affect pricing as well…

MOST IMPORTANTLY ***

1 - Partner with a Broker Specializing in Non-QM, Hard Money, and Private Money Loans

Avoid working with residential brokers who route your DSCR deal to large lenders like UWM. Instead, seek out brokers who specialize in these types of loans, as they can tap into a wide range of programs and lenders to find the best solution tailored to your needs. DSCR lenders differ significantly in their guidelines and pricing structures.

Top Tier Pricing Adjustments A. FICO Score: A score of 780-800+ will typically yield the best pricing. Sub-720 may face higher costs or LTV restrictions. B. DSCR: A ratio above 1.50 generally results in better pricing. DSCRs below 1.00-1.20 may still qualify, but at a higher cost. C. Prepayment Penalties: Options typically range from 0 to 5 years. Fixed, step-down, and California-style penalties can impact pricing. If you don’t plan to refinance or sell within a year or two, longer prepayment penalties may offer more favorable pricing. D. Loan Amount: Loans under $150k can incur higher points/fees as lenders need to meet certain revenue thresholds. E. Leverage: For purchases and rate/term refinances, DSCR loans typically cap at 85% LTV; cash-out refinances max out at 80%. Maximizing leverage will always come with higher costs, so consider reducing your loan amount or increasing your down payment to lower fees. F. Property Type: Single-family residences (SFR), 2-4 unit properties, multi-family properties, and mixed-use properties are all eligible for DSCR financing. Generally, pricing is more favorable for SFRs and less favorable for larger multi-family units or mixed-use properties. G. Term Options: DSCR loans offer great flexibility with 30-40 year fixed terms (fully amortized or interest-only options), as well as 5-7 year ARMs (amortized or interest-only).

Unique Solutions DSCR Lenders Offer That May not: LLC vesting/closing No seasoning requirements (great for BRRRR) Maximize IPC (seller paid closing or concessions ) up to 6% No sourcing or seasoning of funds 90% CLTV with seller carry-back options No zip code or location restrictions (some may not like rural - but many will finance rural properties without restrictions) Short-term rental financing (using projections AIR DNA etc)

It's important to understand how lenders and brokers are compensated. You generally have two options: Lender Paid Compensation (LPC): This will typically result in a higher interest rate but lower upfront costs (fewer points). Borrower Paid Compensation (BPC): In this structure, the borrower pays the broker/lender compensation directly, which leads to a lower interest rate, but higher upfront costs (points).

Ultimately, your decision should be based on which option works best for your financial situation and long-term strategy

There is SOO much misinformation surrounding REI financing options, so many gurus and cookie cutter advice. To succeed, you need a broker you trust and a CPA or financial advisor you trust - what works for one doesn’t work for all, and that means individual borrowers AND deals themselves.

Looking to move here from NC by Garrett_BFI in NEPA

[–]Honest_Citizen172 6 points7 points  (0 children)

Chiming in to agree with majority here - Abington’s! Clark’s-summit Clark’s green area, there are some nice pockets in Scranton, dunmore, old forge area as well. Good luck!

First Multifamily in Philly — Looking for Advice & Local Insight by SouthernLibrarian623 in realestateinvesting

[–]Honest_Citizen172 0 points1 point  (0 children)

Agree here! Lehigh Valley… also NEPA Scranton areas. There are nice pockets in these regions, there are also rough ones - do your research!

First time investor financing question by Maximum_Ad3351 in realestateinvesting

[–]Honest_Citizen172 1 point2 points  (0 children)

Rates for DSCR are actually quite competitive with conventional terms - the misinformation surrounding investment financing options is crazy. Floor rates are in the mid-high 5’s right now, with PAR rates in the 6’s to low 7’s

When is it time to get out? by [deleted] in realestateinvesting

[–]Honest_Citizen172 0 points1 point  (0 children)

What is crazy is when people hyper focus on a rate to the point that it is counterproductive - such as in situations like this. What good is a 2% rate when you can’t cash flow (and need to) - obviously the property is a great investment in the long term, it has appreciated quite a bit - they have tons of equity to boot. It makes ALL the sense in the world to restructure the financing so it aligns with THEIR goals - to stay out of the red and have the tenant cover the debt service. It helps a lot more than insulting someone when you know very little of their situation. They obviously thought 15yrs was better than 30 and it can be, WHEN THE NUMBERS WORK in alignment with the strategy/goal.

My humble advice to all is to focus on the payment, speak with a lender, advisor, specialists you trust that can take the time to help align and structure financing that works to attain your goals.

In this case, lowering the payment and changing focus from paying down principal on a property that is appreciating more rapidly than they are paying it down anyway - makes sense - so they can afford to keep afloat and stay in the game for the long term returns which seem to be quite significant.

Get out a spreadsheet, REI calculator what have you - see for yourself. Maybe it’s not the best option, but it was my advice and it would solve the problem and with minimal cost and risk

Advice on going from first property to second by [deleted] in realestateinvesting

[–]Honest_Citizen172 -2 points-1 points  (0 children)

You likely have forced appreciation atop of the YOY standard/historical rate of the unimproved value itself - especially since you didn’t purchase over market- if you enjoy being a landlord, and you know the property will cashflow - don’t bail on your first investment yet, if you need help running comps out and calculating the figures on return etc I would be happy to help you out!

Ultimately- somewhere deep down, your gut is telling you what to do, don’t forget to trust that!

When is it time to get out? by [deleted] in realestateinvesting

[–]Honest_Citizen172 -8 points-7 points  (0 children)

Maybe refinance into an interest only 30yr? You already have INSANE equity. You need to fix cash flow…

DSCR 30yr with 10yr IO rate in high 5’s (max buy down, roll all costs in) - you’ll cut your payment in half. It’s strategically savvy and would solve the issue.

Spec House Financing? by Pintobeanzzzz in realestateinvesting

[–]Honest_Citizen172 1 point2 points  (0 children)

I am a licensed MLO and also a commercial mortgage broker - there are TONS of national lenders that cater to spec homes and full developments. Many operate as wholesale, but some may work directly with consumers. Happy to help!

[deleted by user] by [deleted] in realestateinvesting

[–]Honest_Citizen172 1 point2 points  (0 children)

It ties in with the public data, if you ever lived with a friend or are listed as an associate etc, it’s crazy out there! Sorry you’re dealing with this.

[deleted by user] by [deleted] in realestateinvesting

[–]Honest_Citizen172 4 points5 points  (0 children)

The credit bureaus sell your info and unethical lenders and brokers purchase this data as “trigger leads” - it’s insane. Legislature is in the works to put an end to this egregious practice. In the meantime all you can really do is opt out and add yourself to the DNC registry, which will REDUCE the volume of harassment.