All Forum Posts by: Eric Dame

I am new to real estate property investing in and around Nashville, TN, and I have my first multi family/triplex under contract. My plan is to build a business of several small multi family units for passive income. Does anyone have a recommendation for a lender in the Nashville/Murfreesboro  area that is good to work with on an ongoing basis/multiple loans?

@Jerry Padilla Closing date is set for July 1, and it is an investment property. There are improvements I can do and the rents are currently below market. What do you think about a cash purchase, doing some improvements and increasing rents to market, then refinancing with a commercial lender?

@ Caleb Jordan

The bank is not looking at DSCR. 15 year amortization does yield a smaller DSCR than I want. I am really looking for passive income from real estate investments. This is my first investment property purchase but plan on many more. Should I search for more of a commercial lender? Are they more likely to provide a longer loan term?

I have a triplex under contract and have received the following finance option from my local bank. I have a longtime relationship with them and my credit is excellent. I’m going to pay cash initially because the triplex closing will happen prior to the loan being ready for closing.

Price for triplex $ 220,000

Loan Amount - (70% Loan to Value)

Rate – 4.66%

Term – Amortize 15 year period with a 10 year term. Repayment will consist of monthly Principal and Interest payments based on a 15 year amortization, however, will mature in 10 years. At that time we can renew/restructure/payoff

I was hoping for 20% down and 15, or better, 30 year term

Feedback...

Thank you all for your responses, your feedback has been helpful! It turns out the park was grandfathered in and if something happens to the existing homes, the city will not allow new ones to be brought in. My real fear would be a natural disaster, like a tornado, wiping the park out without the ability to replace the homes.

I’m evaluating a mobile home park in a community that seems to only have parks with park owned homes. Is there a way to figure out what a reasonable lot rent should be for financing purposes and eventual conversion to lot rent only park?

Thank you for the feedback everyone! You have been very helpful!

I have my first MHP under contract and am I beginning due diligence. If I end up buying the park, do the leases from the prior owner immediately become invalid? Do I have all tenants immediately sign new leases and is it ok to raise lot rents right off the bat, even if they recently moved in under the prior owner?