Ep 19: When to Graduate From Hard Money to a DSCR Loan
Why can't you refinance a flip into a long-term rental loan the day the rehab wraps up?
Most Iowa investors treat a hard money bridge loan and a debt service coverage ratio loan (DSCR) like items on a menu. Pick whichever has the better rate this week. That is where the trouble starts.
These two loans do different jobs at different stages of the same deal. One carries you through the rehab, when the house has no rent and maybe no working kitchen. The other is what you graduate into once the property is finished, leased, and earning.
Neil walks through an Urbandale duplex that went from a…
The skinny
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