Tiny Home + Land Portfolio Loan: haven't seen forums on this yet!

[Levi Helms]

Hi BP! This website is life changing! Thanks for everything so far. So here's the situation...

Your goals and story: Last year my wife and I bought a tiny house and a little slice of land in Fairplay, CO. Far and away, the most difficult part about the process was.....FINANCING! Ugh, tiny houses fall into this tiny crack where they are disqualified from pretty much everything. Traditional mortgage? No way. Mobile home loan? Nope, it's less than 400 square feet. RV loan? Technically yes, but still no. Last year I tried 60+ lenders (attempting the Brandon Turner method of "No? Ok, next"), and only found a handful that could work. Lightstream is the most famous, but the longest term they lend is 7 years. We ended up with a lender that specializes in tiny houses out in Utah, but they ripped my arm and leg off in terms of interest rate and down payment. This doesn't even include the land loan...which was almost as difficult to find too.

Basically, we want to add another tiny house to the lot, and refinance the entire package in a commercial-style valuation. So this would be 2 tiny homes + land, fully rented out. 

Type of property: 1 professionally built, RV certified tiny house + 1 custom built non-RV certified tiny house + 3500 square foot plot of land

Location of property: Fairplay, CO: Link to view

Purpose of financing: Refinance existing loans + purchase, rehab (if needed) & develop land (simple tree removal + concrete work) for 2nd tiny house

Type of financing sought: Private loans. No conventional lender (that I've found) will be able to fit all this criteria, because it's very unique.

Occupancy: Currently rented on a short-term basis (airbnb), however, in the process of securing long term tenants.

Gross rent (for 1 tiny house): $14,400 annually ($1200 monthly)

NOI (for 1 tiny house): $9,600 annually ($800 monthly)

Expected Gross rent (for 2 tiny houses): $26,400 annually ($2200 monthly)

Expected NOI (for 2 tiny houses): $18,000 annually ($1,500 monthly)

Value of portfolio financed at 8% cap rate: $225,000

Loan terms sought: 70-80% LTV loan size ($157k - $180k), 20+ year term

Anticipated or actual appraisal issues: This is where one of the main problems lies. Since it's so non-traditional, the appraisal doesn't exactly apply. The property cannot be valued in the traditional way, which is why I'm seeking a private lender who will value the property in a commercial-style method via the cap rate.

Source of down payment funds: Implied equity (refi)

Income Source: W2 for both my wife and I

Gross annual income (between the 2 of us): ~$300k

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: Student loans, rent, and what exists for this tiny house.

FICO: 725

Credit issues: none

Thanks for reading this far! Please, please, please do not skim this post and reply "try your bank bro". I'm looking for thoughtful sources for a private lender or "custom" loans. Thank you BP!