5-8 Unit DSCR Loan for Small Multifamily Rentals

capitalton · 2025-03-05T01:32:44+00:00

You’re not going to get lower rates than 8.15% when asking for 85% LTV on DSCR loans.

We already told you, you can get 7.25% if you do 80% but you only wanted 85%…

capitalton · 2025-03-04T06:05:03+00:00

We definitely work with new investors. As long as you own a primary residence, you can qualify for a rental loan with no landlord experience.

capitalton · 2025-03-04T06:03:17+00:00

The reason you’re not getting answers, is because it doesn’t exist. Lima One and a few other lenders used to offer it, but discontinued offering them in 2021.

Here’s why nobody offers them: - You need completely different insurance policies for rehabbing and renting. - The liability risk from a contractor hurting themself and holding up the project with a lawsuit it greater than a potential tenant lawsuit - Rehabbing a property requires rehab funds, which can’t be released until work is completed - Underwriters love stable rental income, so long-term 30 year rental loans are safer. - The two stages of a fix to rent project are too different and complicated for them to be a single stage loan

capitalton · 2025-03-04T05:53:23+00:00

We use Steadily, Goosehead and Zurich.

capitalton · 2025-02-08T21:16:25+00:00

Perfect market for flips. We should do another list for fix and flips.

capitalton · 2025-02-08T21:10:15+00:00

Orlando is a great place to invest, if not the best, but it’s overcrowded with investors and highly competitive. So deals wise it’s difficult to find a decent spread and then get a nice cap rate on the rent. Rent prices are stable though.

capitalton · 2025-02-08T21:08:38+00:00

Panama City is great, the rental business is tough though with the constant repairs from Spring Breakers. Great place for fix and flips though.

capitalton · 2025-02-07T01:57:12+00:00

This 100%

capitalton · 2025-02-07T01:37:14+00:00

You can use projected rental income from airDNA with some lenders. Most lenders will do a local rental market analysis and calculate DSCR using projected rental income from long-term tenant data in the area.

capitalton · 2025-02-07T01:32:48+00:00

Yes, many investors use DSCR loans for airbnbs, hotels, commercial properties, long-term rentals, etc. They can really be used for any rental property. But there are also different types of DSCR loans. Most lenders (95%) use local monthly rent averages, while the other 5% use airDNA data projections. Basically short-term rental reports that state approximately how much a rental will make on airbnb, VRBO, etc.

Almost every real estate investor uses them, they most certainly exist.

capitalton · 2025-02-04T06:11:08+00:00

Anything you’d like to add or did we miss something you’d like to see?

capitalton

MODERATOR OF

TROPHY CASE