All Forum Posts by: Ryan Henderson

I just locked in 5.25% w/ 20% down on a SFH rental.

I've only been able to find 75% LTV on conventional 30yr mortgages for my rentals. One bank will do 80%, but the pricing increases dramatically compared to 75%.

I'd also factor in the reality that the Fed will be raising rates several times this year, which will directly impact the rate you pay on any floating rate debt instrument tied to prime (your HELOC specifically). Currently prime is 4.50%, but that could easily be 5.25% by Q3, meaning more of your monthly payment would be going towards interest. Just something to consider. I'm currently in the process of closing out my HELOC / LOC's and refinancing my rentals into 30yr fixed mortgages because the increase in rates could easily make my floating HELOC / LOC payments basically the same as the P&I on a 30yr fixed.

I've done this with my SFR's. I think you need several things:

1) Good credit score

2) A bank willing to lend with investment property as collateral

3) Equity in the investment property (my bank will do 80% LTV)

Terms right now are 4.25%, but the rate floats so you might want to watch that given rate increases going forward.