Getting a loan on a rental

[Sam Wilson]

Hey BP crowd - I have a rental property that appraises for 53k and rents for $750.  It has been continuously rented for over two years and we net about 7,500/year.  Currently we have no mortgage on the home but would like to get one to free up that cash.  We've talked with two banks that said they do not give mortgages to homes that appraise so low.  Didn't know if that was a universal problem?  If so what suggestions do you have for this?

Thanks!!

[Chris Mason]

Hi @Sam Wilson,

• Google search "poorest zip code in [state name]" and find out who is doing mortgages there. Those folks will obviously know about all the CFPB compliance hurdles that come up with small loans.
• If needed, call up listing agents that have properties listed in that price range (in that zip code above), and say "hey Agent Sally, I noticed your listing on 123 Main St, but my lender says they don't lend that low... do you know anyone that will?" -- that agent wants to get paid, so obviously Sally knows someone that'll lend on her listing.