Interest rate of 5.75% on investment property???

[Mo Muigai]

Recently closed on residential with rate of 3.5%. I know investment properties run higher rates but is 5.75% a bit too high or that’s typical? This will be my first purchase of actual investment property.

Thanks!

[Timothy Hero]

For conventional, that's slightly higher than average. If you're referring to a private lending company, that's good. Many investors are getting between 4 - 5% for rental properties when going with banks. When going with PML's, it's anywhere from 5.5% - 7.5%.