All Forum Posts by: Jeff Zatlin

Thanks Chris

7 units

Looking for 75% financing on a small purchase.  Around $285k financed, 375k purchase price.  multifamily property fully rented, nice cash flow.

They're in the MLS - I'll email the links to you in a few minutes. For what it's worth, there has been a lot of interest in these properties...

They are both listed at $129,950 and the units are all rented for $850/month.  The rental market is tight, there aren't a lot of properties available, and prices are starting to move higher.  This sale is part of a 1031 exchange for me but that doesn't complicate anything for a buyer.   I will be acquiring additional property in this market with the proceeds.  It's a good place to be.  Units are rehabbed from top to bottom, they are furnished, and they are rented.  Property manager is in place, and it couldn't be easier for an income investor to get started or to add to their portfolio.  

I've contacted a lot of banks, Richard. The loan amount is too small, or they're looking for a conforming loan and I'm not quite the conforming borrower. I can't recall a single bank that would finance the rehab, and the ltv is always based on the current appraised value, not an ARV. 65% is about right though for a bank - again, based on what the property appraises for at purchase.

This is a buy and rehab to hold.  I'd like a 5 or even a longer term note.  I'd settle for a 2 or 3 year note though.  Interest only would be great, or P&I based on a thirty year amortization would be okay as well if the rate is right.  I know there are lenders who would do this loan out here at 7% give or take a point or so but the amount to be financed is below their minimum.

I just opened escrow on a duplex in the high desert near Joshua Tree and Twentynine Palms. I'm paying $64500 and need to make about $15k in improvements, and an appraiser thinks the ARV will be a little over $80,000. I have money to put into it, and a couple hard money lenders who have financed some previous deals for me are ready to go on this one, but the points, fees, and interest rates are really high. I've purchased, rehabbed, and hold three other multi-unit properties in the area, and they're 100% occupied, and each unit of the various properties all generate $850/month in gross rent. Is there anyone out there who would be interested in financing a small deal like this?

Thank you for making two really important points and helping me understand these things not much more than ten minutes or so after I posted my original question! I suppose I don't have to tell you I'm new here and just getting my feet wet on this site.

It's reasonably priced based on the comps, and I haven't had anyone inspect it yet because I wanted to figure out a reasonable offer first and make it contingent on an inspection. I'm like anyone else and want to put as little money into it as I can get away with. I would be willing to put 20% in, but also guesstimate I might need to make as much as 10k in improvements.

I'm interested in buying a single family home as a rental property. Projected rental income would be $850/mo gross. Based on the 2% rule, the purchase price shouldn't exceed $42,500. Using the 50% rule, the price should be $50k. SFR's are offered based on comps, though, and this one is offered at 74k. So I'm trying to understand why the comps would be so high, or perhaps due to the fact that the numbers are pretty low perhaps the rules become a little less functional? Or is this just a no-brainer and I should move on?