Portfolio Loan for SFR, Refinance

[Adam Larkin]

Hi BP!

Thanks to all the available resources available on BP I have started building a SFR portfolio in Memphis TN.

I've been buying cash, rehab (in some cases), renting, and cashing out with a local bank. 
some have been occupied, some have been vacant. 

The local bank has been great, I can have my LLC hold title, they give 80% LTV with no seasoning, I can bundle properties, no origination fees, rate is in the 6 to 6.5% range, 5/1 ARM, it was the best deal I could find. The only down side is the 20 yr amortization schedule. I'm coming up on 19 properties. All should be stabilized by September.

I am considering consolidating all properties into a single portfolio loan to benefit from the 30yr amort schedule, to maximize cash flow. It looks like refinancing into a 30yr schedule loan can provide nearly an additional $1000 per month in cash-flow (assuming similar rate and debt). 

My concerns -
1. Average appraised door value is just over $50k; I know many portfolio loans specify min. $75k per door
2. Seasoning period, these have all been acquired in 2019
3. fees, minimums, max. LTV, rates, appraisals, loan type, recourse/non-recourse etc.

My ideal loan: 
- No min. per door value (there are few houses in the $30k-40k range)
- 30yr schedule, I can deal with a 5, 7, 10 yr balloon
- 80% LTV, no seasoning
- non-recourse, but I can deal with recourse
- min loan amount of $500k is OK, total portfolio value is close to $1M
- low origination fees / pts
- desktop appraisals

I would very much appreciate some feedback on the scenario, your experiences

Thank you,
Adam

[Stephanie P.]

Originally posted by @Adam Larkin:

Hi BP!

Thanks to all the available resources available on BP I have started building a SFR portfolio in Memphis TN.

I've been buying cash, rehab (in some cases), renting, and cashing out with a local bank. 
some have been occupied, some have been vacant. 

The local bank has been great, I can have my LLC hold title, they give 80% LTV with no seasoning, I can bundle properties, no origination fees, rate is in the 6 to 6.5% range, 5/1 ARM, it was the best deal I could find. The only down side is the 20 yr amortization schedule. I'm coming up on 19 properties. All should be stabilized by September.

I am considering consolidating all properties into a single portfolio loan to benefit from the 30yr amort schedule, to maximize cash flow. It looks like refinancing into a 30yr schedule loan can provide nearly an additional $1000 per month in cash-flow (assuming similar rate and debt). 

My concerns -
1. Average appraised door value is just over $50k; I know many portfolio loans specify min. $75k per door
2. Seasoning period, these have all been acquired in 2019
3. fees, minimums, max. LTV, rates, appraisals, loan type, recourse/non-recourse etc.

My ideal loan: 
- No min. per door value (there are few houses in the $30k-40k range)
- 30yr schedule, I can deal with a 5, 7, 10 yr balloon
- 80% LTV, no seasoning
- non-recourse, but I can deal with recourse
- min loan amount of $500k is OK, total portfolio value is close to $1M
- low origination fees / pts
- desktop appraisals

I would very much appreciate some feedback on the scenario, your experiences

Thank you,
Adam

Adam

 @Dan Gamache can help you with these.

Stephanie