Question 1

Can I use DSCR for a property that needs major rehab?

Accepted Answer

Not usually. DSCR lenders want stabilized, rent-ready properties with provable cash flow. Heavy rehabs won't appraise or qualify until work is done.

Question 2

How fast can hard money close in Gardena?

Accepted Answer

Often 5-10 days if the property appraises clean and title is clear. Speed is the main reason investors pay premium rates.

Question 3

Do DSCR loans require reserves?

Accepted Answer

Yes, typically 6-12 months of mortgage payments in the bank. Hard money usually doesn't require reserves since terms are short.

Question 4

Which loan has lower upfront costs?

Accepted Answer

DSCR. Hard money charges 2-4 points plus higher rates, making it significantly more expensive to close.

Question 5

Can I refinance from hard money to DSCR?

Accepted Answer

Absolutely. That's a standard exit strategy once your Gardena property is renovated and generating rental income.

DSCR vs Hard Money Loans in Gardena: Which Investor Loan Fits Your Deal?