First Investment Purchase Charleston SC - Mortgage Help

[Chris George]

Hi Everyone,

Well this is my first post and I am excited that I just successfully closed on my first investment property in Charleston, SC. I was able to find an off market deal in a great neighborhood and already have it rented after just 5 days on the market. $1915 monthly rent, $250 non-refundable security deposit, one month refundable security deposit on a $218,500 purchase price. My broker tells me an identical unit just sold for $250,000. So this is a value add type play with some built in appreciation. 

I teamed up with a local bank (CresCom) to handle day to day checking. The reason I chose this bank was that they said they could lend based on the income of the property. I was very specific on a long phone call when I disclosed that I would not qualify for a traditional mortgage and would not have w-2 income to guarantee the loan.  I even said no personal guarantee. The commercial mortgage banker assured me this was no problem and that they perform "portfolio" lending all of the time. 

Fast forward to post closing and lease signing, the banker doesn't show up for a scheduled face to face meeting and then writes me an email saying sorry we missed and outlining the items needed to proceed. The reader can probably guess that the bank wanted personal financials and multiple years of personal tax returns. He then tells me they require personal guarantees on all loans and simply don't do any loans without PGs. I almost fell off my chair. 

So now I am trying to find a source of financing in order to pull some cash out and start on my next deal, which actually came across my desk yesterday. 

Has anyone successfully borrowed based on the property income? Anyone operate in this area have any advise? Many thanks!

Chris