Need advice for loan on 1st deal

[Jeff Brown]

Hey guys,

I'm currently looking to make an offer on my first deal. I made the mistake of not having all my financial ducks in a row before finding a property. The two main reasons being I was actually interested in this property a long time before I chose to get into real estate investing and that I already planned to do the financing through my local bank (I have a great relationship with them). This will be an investment property. I will not be house hacking.

The terms that my local bank offered me where 30 yrs fixed at 5.25% interest with a 85% LTV. I was hoping to get a 90% LTV and possibly a slightly lower interest rate. I called a few other banks around locally and their terms are even worse being 80% LTV, 5.5-6% interest for 15 years, some fixed and others ballooned. Do you guys think these are great rates or should I be looking to get much better terms somewhere else?

With these terms the numbers on the property can still work. However, with the extra 5% down it cuts into my Cash on Cash return. Any and all feedback is welcomed. Thanks for your time!

I hope everyone is having a great holiday season!

Jeff Brown