Financing Options on First Rental Property

[Kevin Sun]

Hey everybody, my name is Kevin Sun and I am a student at Rice University looking for some advice.

Recently, 2 partners and I purchased our first rental property out in Beach City, TX. It is a 3/2 manufactured home with ~1000sqft, and a 6600 sqft lot with a waterfront view in a very expensive neighborhood. Recently sold comps (other manufactured homes) with much larger lots but similar build have sold for 120-140k in the area. The interior was rehabbed in 2023, and me and my partners rehabbed the electrical, plumbing, roofing, and septic (In short, it is in very good rental condition). There have been good tenants in the property for a year, and they are currently paying 1250/mnth in rent and we bought the property for 85k, and after our small rehab and closing costs we are all in for 95k. Cap rate is ~15%, but we want to build a portfolio as we continue learning so we are trying to get our cash back out.

Our key issue is that we purchased the home and did the rehab in cash, and we are now struggling to find methods to get our cash back out. Lenders do not want to give us a DSCR because they have minimums set at 100k, and conventional is difficult because our insurance policies never exceed 30k because it is a manufactured home. We are looking for a way to pull as much cash out of the property as possible and need some advice. Cashflow is over double what any mortgage would be on a reasonable interest rate, and we also have a cosigner available for a conventional. If any of you know any lenders that would consider this, we would appreciate any help getting connected at all. Thanks a ton!