All Forum Posts by: Heather Easterbrook

Welcome Christopher! I see you've figured out the secret formula to financing. LOL! 

Please feel free to contact me if you need assistance.

Susan,

There are banks/other lenders that will look at investment properties, even one sfr, from a commercial perspective. The rate is a little higher, but they do not consider DTI when qualifying the property. Instead, they look at the cash flow or DSCR. Rates usually start around 5%.

Let me know if you need further assistance.

Heather

Yes, it's possible depending on your situation. 

What type of commercial property is it?

I have several portfolio, as well as low/no doc residential, lenders that I work with. 

Adam,

I wouldn't recommend a 5 year ARM if you plan on keeping the property long term. Depending on DSCR and LTV, you can get a fixed rate portfolio loan starting around 5%, amortized over 25 or 30 yrs, with a 10 or 15 yr term.

Heather

Stephan,

Any property that's 5+ units falls under commercial financing. 5% is not a bad rate, but not necessarily the best rate you can get. Obviously, it depends on many factors such as property type, location, rental history, DSCR, LTV and many more. There are many lenders that are willing to finance multifamily properties under $1M. You need a lender who's niche fits your parameters.

Heather

There are a lot more private lenders offering bank competitive rates and terms for investment properties then there used to be!  They move much faster than traditional banks and usually have fewer restrictions for qualifying.  Even if the borrower doesn't have the best credit, as long as the property has good cash flow and down payment, they'll fund it.  

Zach,

I believe the FHA loan allows up to $35k for repair/improvement/upgrades. It's also very regulated, as is anything related to government.

Here's the link to the 203k Maximum Mortgage Worksheet:

http://portal.hud.gov/hudportal/documents/huddoc?i...

It will give you a better idea as to what is required and how to calculate it.  In this scenario, I think you're wasting your time looking at conventional financing.

Good luck!

Heather

Are you units you're planning to rent out currently leased?  If so I may be able to help.  Please contact me directly for more information.

Thanks!

Heather