Financing Options For Low Dollar Value Rental Properties

[Joseph Lavoie]

I recently purchased and rehabbed a two bed one bath rental unit in Birmingham, AL that will be rented to section 8 tenants. The ARV on this property is just under $100k and I am struggling to find lenders who are willing to lend on such a low dollar value. I do intend to do more BRRRR deals in this area but the financing piece has been a hurdle. Has anyone else run into this issue with lower dollar value properties? I am open to any suggestions. Thank you!

[River Sava]

Hey Joseph, 

As mentioned, a lot of lender won't go under 100k loan amount. Have you talked to any brokers? Might be worth it to have them shop around for you. 

Also, I am from AL and grew up in the northshore (Newburyport if you know it). Would love to connect with you.