Looking for Loan

[Jim M.]

I have a 5 unit multi family property I am looking to purchase. It is in a c neighborhood and bank owned. Purchase price is 30k with approx 15k in repairs needed. 3 of 5 units are rented currently. When rented completely property should bring 2250 a month. The property is in a rough neighborhood and

I have already been negotiating with the bank using my own proof of funds.
I have one rehab going on right now and a 2nd one in negotiations(with a biggerpockets member who I met on here!) which I am funding personally. I would like to leave somewhere between 10 and 20 percent of my own cash in the property. This would be for a buy and hold for several years and I would pay off the loan personally in one year or refi. Thank you.

[Will Barnard]

One word of caution from advice given. From a buy and hold standpoint, and with a HML used for acquisition with the balloon paid via a refi, make sure you have an alternative means to pay the balloon. Either via a flip, a money partner, or some other means. You could be promissed a loan today based on your numbers, hit or even exceed those numbers in a year from now, and that same lender could then tell you no. Reason being, lending is changing daily and you never know what the lending market will be in one month from now, let alone one year from now.

I can remember countless investors who banked on a "refi" down the road, then lending changed, underwriting changed, and many of them lost their investments to foreclosure.