Question 1

Can I use DSCR for a property that needs renovation?

Accepted Answer

Only if it's minor work and already rented. Major rehabs require hard money first, then refinance to DSCR once it's stabilized and generating income.

Question 2

How much does hard money cost compared to DSCR?

Accepted Answer

Hard money runs 8-15% with 2-5 points upfront. DSCR typically costs 6-9% with standard closing costs, saving you significantly on 12-month interest.

Question 3

Do I need real estate experience for hard money loans?

Accepted Answer

Most lenders prefer it but focus more on the deal itself. First-time flippers often need larger down payments or lower loan-to-cost ratios.

Question 4

Can I refinance hard money into DSCR on the same property?

Accepted Answer

Yes, that's the standard strategy. Acquire and renovate with hard money, then refinance into 30-year DSCR once the property is rent-ready or rented.

Question 5

Which loan works better for Beverly Hills multi-units?

Accepted Answer

DSCR handles 2-4 units well if they're already producing income. Hard money works for acquiring duplexes or fourplexes that need repositioning before stabilization.

DSCR vs Hard Money Loans: Which Investor Loan Fits Your Beverly Hills Deal?