Financing My First Rental

[Brian Baker]

Hello BP Community,

I've been working all year to get my first rental property under contract and it's finally happened!

I had a conversation a while ago with the commercial lender where I bank locally, and I thought I was going to be able to finance the property with 20% down, using a conventional 30 year loan. It turns out this is not the case with this bank, so I'm looking for suggestions. Does anyone work with any banks that do this, or have recommendations for a loan structure that could get me as close to this type of financing as possible?

A few details about the property: It's in North Carolina. The purchase price is $130,000. As I mentioned, I'd like to put 20% down and have a 30 year term with a competitive rate. If possible, I'd like to have a short (if any) limitation on refinancing. It's definitely in livable condition, but I'd like to make some improvements that I would probably end up paying cash for (or utilizing an equity line on my permanent residence), then refi to pull some of the money back out to hopefully use for the next property.

Any suggestions or recommendations would be GREATLY appreciated!