Two for One

[Tyler Kesling]

I've spotted a package deal for two duplexes right next door to each other. I'm going to reach out to the broker but don't want to sound too much like the noob I am so I'm curious that since these are being sold together, will I have to look at two separate loans/closing cost or is there a way to do a package loan? If it's two mortgages, how common is it for a bank to do two at once for a new investor? Anything odd I should ask the broker since it's a package? Thanks in advance. 

[Jay Hurst]

Quote from @Tyler Kesling:

The property is Huntington WV and is exactly 25 mins from where I'm standing, so I'm only calling it out of state because it technically is, but it's a location I'm fairly familiar and travel to often. Huntington is a little warmer market than Ashland and has a lot more property options. I'm not opposed to investing in Ashland, but Huntington would be my first choice due to the population, demand, growth, college, affordability, and the list goes on and on. So unless there are big hurdles to buying across state lines, I don't really have any concerns of doing whatever I can on my own and outsourcing the rest to the folks over there. 

Thanks for the help, I'll take a look at local agents and see if they can help across the line and see what my local CU and other locals can do with a portfolio loan. 

I'm guessing national or regional banks don't really do that?

You do NOT want a blanket loan. You want two individual loans to get much better terms. Blanket loans are typically ARM's instead of fixed, and then you are tying the two properties together. What I mean by that is that you would not be able to sell them one at a time which you might want to down the line.

Investors often think that blanket loans will be cheaper but in fact there would be very little if any savings from a closing costs standpoint, and the terms of the loan would make it much more expensive overall.