Interest rate on investment property? Hmm..

[Huso Akaratovic]

Greetings folks,

I am attempting to finance a rental property. I have never taken out a loan on a rental property before, since I’ve always paid cash for it. I am trying to scale my business up and not spend all my cash on one property, but instead use 20% for down payment and finance multiple properties. My lender advised me that an interested rate with Wells Fargo is 6.25% with 30 year fixed with 20% down. Does this even sound reasonable. In my eyes, it doesn’t but again what do I know.

The numbers make sense on the property, I would be cash flowing around $500 per month, plus I also would have immediate equity. So, the numbers are not the issue, I just can’t wrap my mind on that interest. Am i focusing on the wrong things and not seeing the big picture? What other options do I have? Assistance is much appreciated.

[Michele Wax]

If your credit is good and you have other properties...I would wonder why so high also.

I believe that you should be able to get a better loan somewhere else. 

If you look.

Good Luck!