If I buy a multi-family and remodel it with hard money, then do a DSCR loan on the new appraised amount for that property; can the value built in by the remodel carry the down payment requirement if the new appraisal is high enough?
Hello.. My rent appraisal came in $200 less than the break even. Are there options for my lender to possibly make this work? If so, what are the options? Thanks!!
@JefftheMortgagePro first of all thank you for being you Jeff . Right now I'm looking at 5 rental units that are 46 to 101 units based on that number I would imagine I might need to put aside 25k just in case I need it if not that's beautiful to I have to strategically plot and plan how to underwrite a creative finance deal that works out for all parties involved 🙏 thanks again for your response Jeff
![Debt Service Coverage Ratio (DSCR) Explained [Real Estate]](http://i.ytimg.com/vi/i7WAsYxGHIA/mqdefault.jpg)
Need help with DSCR appraisals? Reach out to me here: calendly.com/jeff-trevarthen/15-min-call
Just found you mate. Thanks for the content.
Welcome!
Very timely video 😂
Great content!
Thanks Dan!
If I buy a multi-family and remodel it with hard money, then do a DSCR loan on the new appraised amount for that property; can the value built in by the remodel carry the down payment requirement if the new appraisal is high enough?
It would be considered a cash out refinance at that point and no down payment needed. 😊
Hello.. My rent appraisal came in $200 less than the break even. Are there options for my lender to possibly make this work? If so, what are the options? Thanks!!
Yes you have options. There are some lenders that allow 0.8 dscr and even some that are no ratio. 👍
@JefftheMortgagePro Thanks for the quick response! I'm definitely feeling better going forward!
How much is the average appraisal? Let's say on an 80 unit
On an 80 unit? I have no idea. On residential 1-4 units, probably ~$1000, although that varies by location.
@JefftheMortgagePro first of all thank you for being you Jeff . Right now I'm looking at 5 rental units that are 46 to 101 units based on that number I would imagine I might need to put aside 25k just in case I need it if not that's beautiful to I have to strategically plot and plan how to underwrite a creative finance deal that works out for all parties involved 🙏 thanks again for your response Jeff
@@goldenarcher8505 apartment building's involve a lot more than just the debt service coverage ratio. I'm a little out of my league on this one. Lol!