All Forum Posts by: Shawn Bass

@Alex Forest sorry not sure if I answered your question completely.   Yes comps are usually what holds this up.  If you have a good comp nearby that can be provided to the appraiser, you shouldn't have a problem getting it underwritten, but you will need a lender who doesn't want to walk away from a more complex deal.  Sometimes your bank can be that good last resort in cases like this because they are motivated by your other business.  They'll put in more work to win the business.  Best of luck to you on your deal!

@Alex Forest - Yes my deal went through.  I was not able to use my traditional mortgage broker I using regularly because they didn't want to put in the effort for a "non-standard" property type.   I ended going back to my bank (Chase) who I have multiple different accounts with and they were highly motivated to get my mortgage business for the rental unit.  So they spent the extra effort to find a similar comp and they were able to underwrite it.  The rate was a bit higher with my bank than my traditional mortgage broker, but at least I was able to get it done.   Completely separate update on this deal was that the seller didn't disclose the property was in a historical district.  We found out after closing and boy has that been a fun set of challenges with the City of Aurora.   I don't know I'll ever do a historical building again...what a royal PITA.   Despite all of that, I think after the repairs / rehab we've done this place will cashflow extremely well.  So in the end it'll be worth it.

@Michael Facchini the property is in Aurora.

Many thanks everyone for your responses.  Will see if I can find another lender or look for ways to work around the two parcel in one lot issue.   Per Brian's comment it is definitely an appraisal issue as they can't find similar comps to compare it to.

Shawn 

Looking to pickup my second purchase for rentals. Came across a really good value of a property for under $200k. When I passed it by our loan broker, he indicated that the underwriters have an issue with the property because it's two homes on a single parcel. Both houses are duplexes and are rented at the moment. Would be an ideal purchase, but it seems like I may not be able to get financing in the traditional way. Any specific suggestions you may have for me? I won't qualify for an FHA or VA loan. I presume that leaves me only with seller financing or private financing. Is there any other options out there? If not, anyone have suggestions for private financing in the Chicago area?

Thanks.

Shawn