Earlier this year my business partner and I purchased a property in SA.
It's a duplex on the East side of town. Our original intent was to refinance and rent. I was hoping to go with a dscr loan to our business as opposed to another personal mortgage.
The duplex is "uneven" as in one side is significantly larger than the other. I had thought about an Air BNB on the smaller side as it seems to check all the City's block face checkboxes, with a longer term tenant on the larger side. Thinking that might balance out the up and downsides of each model. Though I have used what I thought I could get in longer term rents as my baseline for every cash flow model I've ran as it seems less volatile. I had at one point spoken to one of the fine Hurst lending folks about that.

It seems like rates have pretty well torpedoed that plan, and kind of left me rudderless.

Where would you guys go from here? I'm not in a position to not refinance or sell. I need the capital for other projects.
Part of that may be my fault though. Perhaps I should have attacked this thing differently. We have pretty well gutted it. Rewire, repipe, new piers everywhere, new ac, roof, drywall, the works. Had I not done all of that I'd have more options now. Like maybe not refinancing at all and just chilling for a while.

Any options y'all can think of besides just selling to keep the original plan somewhat intact? What would you do in this situation?

Open to any collective Texags wisdom.

So both sides are in process of Being renovated, but neither is complete? Nor is either side rented?

What is bed/bath count of each side as well as SQFT? And what would anticipated rent be if each side once complete?

Renovating both sides at once.

We're at the cabinet/countertop phase with basically all the trim outs to go, lights, plumbing fixtures etc.

Larger unit around 1050 2/1 smaller around 800 also 2/1

Larger unit has a dining and every living space is slightly larger.

I've been using 1700 and 1500 as my placeholders but I'm not really sure. That's the ballpark.


No clue what an airbnb would look like but it's close to downtown (5 mins)

If you want to move on from it, then it is best to finish the renovation and then sell it as an update, rent-ready, investment property. Is that an option?

If you are trying to unload a half renovated property, then you are going to take a hit, but best case scenario would be to recover costs and capital. I know someone that might be interested.

There are DSCR options that the DSCR can be below 1.00 and still get done. Obviously, that is not a long term strategy but can get potentially get some of your capital back. Of course the project does have to be finished before you can close.

MS08. I'm intending to finish it up regardless. Just curious if there was an exit path besides selling it that I could make work. Sorry if that was confusing. If you're looking to buy sounds like I might be selling soon.


Jay. What else comes with those terms? I'm assuming it's somewhat brutal.

I guess it is all relative right now with owner occupied close to 8% in a lot of cases, but as long as your have 75% loan to value or lower rates are in the mid 8's for DSCR below 1.0. (assuming good credit of course)

House should be worth 410 when I'm done with it.

So a 75% loan at 8.5 would look like a potential loan amount of 307,500.

With my rents at 3200 payment at $2360 a month taxes at 6700 insurance at 2k. That's still slighty above 1 on the ratio.

And in the end game a whopping 100 dollars a month positive cash flow. Without any vacancy or maintenance (I guess I should be happy its positive)

I think this puppy will be for sale.

If the juice is not worth the squeeze it's time to close the loop, and put this puppy to bed. I would not push the envelope on such low hanging fruit, I don't think this endeavor has the necessary bandwidth for this kind of leverage. At the end of the day, and going forward I would look for another property that moves the needle.

Yeah I think you're right.
Well if anyone is interested in a completely remodeled duplex it should be ready around mid January. Address Is 811 Denver In San Antonio.