might end up keeping a 2 family i bought to turnover but it hasnt sold quickly.Do you have to hold any length of time for a DSCR loan? anything i should know ahead of time? if i own the house in a LLC will the mortgage show up on my personal credit? --38.248.xx.xxx

We have a DSCR loan right now on the 3 established up and running buildings (2 duplexes and 1 SFH). I call it a "portfolio loan" but I'm prepaying the interest for the following month to avoid the balloon payment at the end of 10 yrs. --64.246.xxx.xx

Ken, why do you think it's not sold quickly? --172.56.xxx.xx

GKARL-I think the market is slowing down a little bit. i bought it for $70000 and cleaned out 2 dumpsters of stuff and mowed the lawn,3 guys 2 days and listed it at $129900 and got 1 offer at $113000 but when i countered at $125000 they just said forget it and walked but i am not real confident they would have closed anyway.It still needs work but nothing structural,just cosmetic.My broker and i may have overpriced it but if i keep it i can pull my money back out and still clear about $800 a month and it has 2.7 acres of land so if i keep it i will try what Sid does and try to find someone like a dumpster company and anyone who neds to store a camper or a boat --38.248.xx.xxx

How do you think a possible slow up will affect your flip business? You've been doing this a long time, so I'm sure you've seen the ebbs and flows. How does this change how you approach things? --23.28.xx.xx

It will help my flipping immensely, right now noone or very few need to sell a house to me,they list with an agent and every beginner in town fights with each other to pay too much.when things slow down and i am about the only option available they dont have much choice but to sell to me,i wont be able to clean out and mow a lawn and list it and sell it quickly but will do the rehab and list it and will have among the nicest house at the price point available, it will be vacant which allows buyers to see it better and not have to paint etc when they close. my rehabs will sell relatively quickly and there will be more guys with rehab skills available to hire at better prices than now.i am waiting for this to happen and expect it any time --38.248.xx.xxx

With 2.7 acres, you could shop it by some construction companies, Gravel Haulers, etc.... --73.2.xx.xx

Ken--you seem to draw a distinction between clean up and sell vs rehab and sale. I interpret you saying that the clean up and sell won't do as well as rehab and sale. Why? --23.28.xx.xx

--73.19.xxx.xx

GKARL-I believe the complted rehab will still have buyers who want a nice house to live in and can see it complete and eady to go.The people who buy my cleaned out places are paying cash and they are looking to buy a rehab to fix and sell and they tend to go away once the market starts sliding and the media tells them it is a bad time to buy real estate --38.248.xx.xxx

Thanks for your insights Ken. Sounds like I need to start attending the auctions in my area again to get at least one gauge on what's happening. There's been no noticeable slowdown as of yet but I feel it's coming largely based on the difficulty finding tenants. --23.28.xx.xx

foreclosure auctions have slowed way down in my area, i have started trying to buy them from the owner before the auction happens. --38.248.xx.xxx

Where having a 30 year note sounds great, I use these loans in a 10 year loan ladder so I was way better off staying with it. So I would encourage you to review the TOTAL closing cost. These can still make sense if you have a partner and want to split the note. --174.131.xxx.xx

interesting. I used to get hotel loans for investor I worked for. lenders would look at historical dscr and rates were determined on ltv & expected coverage. we had to provide T12 each qtr to ensure dscr covenant was met. the smarter lenders would drill down on below the line to confirm no “interpretations” on the drivers. It all boils down to can the property afford the loan. best ratios I would get were 1.25. what ratios do your lenders look for (?) --104.28.xx.xxx

1.2 --174.131.xxx.xx

--68.45.xxx.xxx