Aurora - Non-Warrantable Condo

[Oliver Lee]

Hi All,

My family and I moved from California to Colorado in December of last year. We are enjoying everything Colorado has to offer and are ready to start investing in real estate! We are currently under contract for a rental condo (2bd 2ba at 1,125 sq ft) in Aurora. We just found out that there are more tenants than owners living in the complex so our lender will not loan since it's non-warrantable. We did find another lender willing to do a 15 year fixed rate loan at 3.75% but requires the Buyer to be an LLC, put a minimum down payment of 25% and provide a personal guarantee. The rate is actually better than our first lender but we will have to pay an additional $6k down (25% vs 20%). We have the funds to pay the 25% but wondering if 1) 25% down is too much to commit on one property 2) if it was necessary to establish an LLC for just one rental property? Thank you in advance for any thoughts on this matter!

Oliver