1/17/2023

DSCR Debt Service Ratio Loans



bear trap

Debt Service Ration Loans for Investment Properties


DSCR


Your good FICO score is used to determine the interest rate

Purchasing or refinancing a rental property 1-4 units

Market rents are determined by the USPAP appraiser

Buyer/ owner pays for the rental survey from the appraiser

The property has to cash flow.

Lenders consider the cash flow ratio differently

Lenders offer these loans at 90% loan to value BUT HOWEVER

rarely will it cash flow that way. Generally you need to put a large

down payment to make the property cash flow.

Rents vs principle interest taxes insurance and HOA

Some lenders require 12 months reserves some 24 which means 

all your bills on the credit report plus the one you are doing times 12 or 24

Generally does not work for a property that needs lots of health and safety code

violations or repairs. You need to be up and renting on day one of ownership.

Some lenders want you to be an experienced investor, some will work around 

this with twenty four months reserves cash.

Here is how your cash is counted:

checking account in same name as vesting   100%

stock account in same name                           60%

401k      "       "    "       "                                 60%


Questions from Bigger Pockets answered:

Hi Caroline, Thanks for the reply and information on investment ****s. My FICO is ~780. I still have A few questions on the information you gave on the post: "You also need reserves" - can that be bank account, stocks, etc. ? is it just to provide snapshots of those accounts? "You need a lease and deposit check cashed at closing" - what does that mean? how can I have a lease or deposit check if I don't own the property yet? Thanks again! 


You will provide bank statements, all the pages, they need to match the name of the vesting. As in:: you are buying in an LLC and the statement is in another name. Checking account is used 100% the end of month dollar balance. Stocks 60% 401k 60%

The lease is required by many lenders as the property must be ready to rent ASAP make money.
DSCR does not require taxes, w-2, 1099, lots of paperwork but it is their way or the highway

Landlord Scam Lisa Rose

 







1156 Chanticleer Ave, # B, Santa Cruz, CA 95062


Lisa Rose is a Karen. She plays with many possible tenants, 
agreed to rental agreement and cancels on move in date. 
She called references at FIVE in the morning. 
Charged application fee when she had no intention of renting.
Avoid this dishonest person. 
Apartment not for rent.
Studio not available.


New York Closing Attorneys

 




Closing attorneys for New York Co-ops


Abrams Garfinkel Margolis Bergson, LLP

2040 Victory Blvd.

Staten Island, NY 10314

2.

Law Office of Ned Neuberger

350 St. Marks Place, Ste 310

Staten Island, NY 10301

3.

Menicucci Villa Cilmi PLLC

2040 Victory Blvd.

Staten Island, NY 10314

Please address questions in these regard

1/12/2023

Home Inspection

Images and video of home inspection. Nori save this link when you have tenant or property management questions. Listed name brand of house filters, monitors, water treatment, and plumbing items...


Front railings need sand and paint with oil based paint



Wine refrigerator seems to be working

Ovens work

Sink in powder room drain holes very small and water drains slow

view roofs  trim the privet down
Thin out privet old wood



Exterior copper drains secured by flimsy wire



Spiral staircase rusting needs sand and paint probably every year
Paint with marine oil based paint

refrigerator outside moldy and galvanized trim needs deep clean, works

needs GFI outlet and one power outlet not working

Ice maker outside no power - outlet problem


BBQ grill electric pilot lighter not operating could be power in the outside kitchen
Gas flows


Sprinkler control for backyard in corner behind outdoor fire

Gas to outdoor fire flows but must be manually lit with match

Pump for jacuzzi/ fountain is pretty small. Works fine. The round two bins that cycle water need to
be emptied from leaves and hair weekly.

Electrical needs better covers as people will come here in wet bathing suit to adjust. Shock hazard.

Fountains not flowing they are on a timer somewhere
Jacuzzi has controls under water.
The two covers for the drains need replacing to code ones that can't catch hair as is drowning hazard.
Today's code would make you cover the spa with netting or put alarms on all the access doors because of children who cannot swim

Some grout outdoors needs filling

Spiral stair again
Carpet in downstairs bedroom has dog stains


Door knob needs lubrication and clean hinges

DW40


Steam in bath not working. Probably I would not fix for a rental

Cords in internet and music audio are a snake pit

Needs labelling, instructions, and color zip ties




Electric panel is older style but nicely labelled. Some time in future upgrade

Love the ironing board feature in laundry
All six washers and dryers work.
Get dryer vents cleaned out

Right handle loose

tub handle falls off

drain slow

This is in the big fireplace in family room. Is a remote to turn gas up down or off. Not working.
Fireplaces are all manual - gas flows you need long match to light

Sink in bar near wine room all loosey goosey needs repair
https://www.italiafaucets.com/products/victorian-single-hole-single-handle-vessel-bathroom-faucet-in-antique-copper?variant=40065197408344&/&utm_source=google&utm_medium=cpc&utm_campaign=rlshoppingpmaxitalia&gclid=CjwKCAiA5sieBhBnEiwAR9oh2sWjJhsMKCEB5w0-fyqxCjhLKMjoq7qcOQPA9-6ulavO7XSMsrzmThoCgPgQAvD_BwE   maybe Italia has similar

or Akicon  https://www.akiconshop.com/c/bar-prep-faucet-0474   note the existing has two holes in the marble top

Sink stopped draining needs to be cleared the plumbing below


Wine room there was a leak in here. Ask about what happened. Wine cooler air humidifier not working
Racks in hall need reinstall. Light fixtures all hanging down need repair



DOGGY DOOR Yippeee!

power in center of living room floor works
Dutch door to side needs plaining/shaving down as is swollen and hard to open

Side stairs exterior need paint. Add sand to paint and slip strips as
is very slippery

Now the side plaster 
Venetian plaster is fragile. They add marble dust into the mix to make it very fine. A window was replaced and they added a nice dual pane metal framed one. Whoever did the plaster fix did a terrible job. He did not match the color or texture and did not polish it smooth. The same guy plastered around some windows facing the ocean and you will see the following images. I know two "artists" who do this right. The plaster can be fixed but it needs to be done in the summer when it isn't raining. There are many cracks in the side wall and plaster over cinder block wall some cracks starting. I suggest this summer you schedule the side of the house replastered so it doesn't look so unsightly.









Beach outdoor shower is a great feature with being near the beach. This area could be cute but they have trash cans here. Missing opportunity.









metal window I mentioned





This dual pane has moisture inside. Summer will clear it or a hairdryer. ALL the window cranks need cleaning and lubing in the house.


In the kitchen under the island on both sides are power outlets. They need to be changed to GFCI's and the one on the counter too.

Again the plaster repair facing ocean windows




Railing facing ocean is not to code BUT never change to the higher one as blocks view
Track needs cleaning and paint trim oil based paint.

Mello Luca tree in front trim the limb that touches.
Gas on off up top

Driveway water connection cracked tile and needs grout repair.



Water outlet at curb. 



Trim this tree to not touch house. 
Vermin can enter from access here- we live near canyons: possums, racoons, rats can create damage.
Move dirt against foundation by front door. (gardener). 
Keep moisture away from house to prevent termites.


Tesla charger in garage seems okay

Salt water for water treatment no salt in it is on no idea if it works

slow flow

drains in front clear


Roof views





Water pump

Aqua Link RS

JVA 2440 torque


Pentair Mastertemp 400

Pentair

Two water heaters. Appear newish. The gas line in is not to code





In the room where there is gift wrapping this is the motor for the elevator

 Click twice on videos to get detailed view of the house.

Since is exposed to ocean air you need to keep it painted on a schedule is my number one tip.