Why there is a $50k per unit minimum for the loans?

[John Quiles]

Hi guys,

I'm on a very very frustrating scenario here.  We are buying a portfolio with 50 rental properties in Macon, GA for $1,3MM. That's $26k per property on average but the actual value of the properties fluctuates between $25k and $60k.  Even though the deal has a gross rent $28.7k/mo gross rent, the total expenses are only $9.5k/mo since the tenant pay utilities, the lenders won't lend on it because the value per unit is below $50k.  I don't get it.  I have a NOI of 230k with a cap of 18% (13% using 50% rule) which means there is plenty of money left to pay the loan.  To the point that I can go as low as 40% vacant and still be able to pay the loan.  Why instead of worrying about my ability to pay the loan they are more worried about the fact that each property doesn't appraised for $50k or more?  It make it sound like they are more willing to lend on a ok deal with properties worth $50k than an awesome deal with cheaper properties. This deal cashflow all day long and it is a pretty safe deal.  Why is so difficult to find a lender for it?