Help with a Commercial Cash Out

[Daniel Levine]

Hi All,

I am trying to close on my first rental property. I have some concerns and could use your advice. The purchase price is 62,000. Rehab costs are 27,000. ARV is 130K. With some holding costs, closing costs, ect I will be all in around 100k. It is a triplex currently not rented. The anticipated NOI is $1,680.00. I have already talked to several banks and I found one that will lend me 75%LTV on a 10-1 Arm at 5%, with no balloon payments amortized over 20 years.

My plan was to use a HELOC I have on my personal residence to fund the purchase price and rehab costs get the house fixed up, rented, then do a cash out. My concern is that they won't give me the loan when we are all said and done and I will have my cash tied up in this house.

After that long winded approach I am looking for advice on what banks look for when it comes to personal finances, credit score, cap rate, collateral ect. I am currently in the process of closing on another house a duplex as the loan application is being reviewed. Will that effect my ability to get a second loan. My concern is that they we say my debt to credit is no good. PS my personal credit score is around 790. Any thoughts.