All Forum Posts by: Fallon Gilbert

My suggestion would be to sell the three and 1031 into something bigger. I know you didn't ask for my opinion but unless you want to just continue in the SFH route there are so many more opportunities in multifamily.

 What state are the properties in?

Nah you're not doing anything wrong, lots of local banks DO have minimum loan amounts, but not all. Not sure where you're located, I'm in Ohio and I see $50k+ amounts regularly. There are a couple of issues with low loan amounts: 1.) there's not much to be made on them, so many loan officers aren't super eager to do them and 2.) it's harder to get them to pass compliance. DSCR with those loan amounts will be tough unless you can find someone to portfolio them.

this is a toughie. truth be told, there are lenders out there that will do an individual DSCR loan w/ a $55k minimum. Problem is, the fees are going to be SO EXCESSIVE... it may not even be worth it for you to press forward.

i would recommend the conventional route if that's an option. 

Do you HAVE to put them in a portfolio, or can you cash them out separately with conventional financing? If that's not an option, I may know of a lender who will go a bit below $75k per property for a portfolio. Depends on the scenario. 

@Fallon Gilbert understood. If you are looking to get a blanket type of loan (combining the value of all 3 and getting one loan/line of credit) you may run into some minimum loan amounts/concerns about location. However, if you are just wanting to pull cash out of each one individually, you should be able to get a conventional loan (assuming you can show stable income). I have plenty of clients who live in a different state than where their rentals are located. 

@Fallon Gilbert what are you needing a lender for? Are you looking to pull cash out of the equity you have in these properties? Are all 3 of these rentals or is one a primary residence? 

The HOA will see a new deed holder and assume the property has been sold and paid off in full. They will have no idea the original loan is staying in the original borrowers name with a subto. I would assume it is the same case for owner finance.