Need guidance on financing options - non owner occupied propertie

[Nick Naik]

Gurus,

I have been working on getting my financing for the next investment property which could be a rehab or rental. I spoke with a bank and another lender called homefinity. Was a little surprised when they told me that just b/c the property is non-owner occupied, I am looking at a rate of around 5.3% to 5.5%. This rate will kill my cash flow and I am glad I spoke to the lenders before putting in my cash offer. My question to you all is, am I shopping at the wrong place? Are there cheaper financing options available? My strategy is to draw on my HELOC to put a cash offer and then put in light upgrades and get it financed through banks or other online lenders. Would appreciate guidance from this group if I am doing anything incorrect here.

Regards,

Nick

[Ralph R.]

@Nick Naik. Your cash flow should not be resting on a couple % interest on the loan. Your numbers are way to close if $50 one way or another is going to eliminate your cash flow. That said I just got 3- 30yr conventional’s for 4-4.5%. The rate may be a little high You could maybe check some more lenders. RR