Investors - What Lender do you use?

[Daniel A.]

Hi all,

I'm a realtor and investor in the Houston area and i currently have 1 rental home which i purchased around 2 years ago. With my ~800 credit score,I was able to secure a conventional investment property 30 year loan via a credit union @ 4.25% interest rate with 25% down and 0 points. 

I am ready to purchase my second rental (still searching for the home) but i have been looking at lenders for another investment property loan. With 20% down, the best i have come across is another credit union offering me 5% 30 year conventional 0 points. Its pretty difficult to find good cash flow with such high rate? 

At this point, i'm really considering transitioning from renting to just buying a primary residence home and renting rooms since i can get a 3.25% 30 year conv....

Anyone have another lender who they would recommend that can beat this 5% for investment property? Or any other good options to use as loan?

[Ned Carey]

@Daniel A. 5% 30 year fixed is a great rate. Historically that is almost free money. 1% or so in the rate should not kill a deal or you probably didn't have a deal in the first place.