Conventional Loan at 3% How did you add value to the deal?

Hi Cayson,We have healthy amount of inventory here in Lubbock, I wouldn't say that there's a housing shortgage at all, in fact we have 3 1/2 months worth of inventory on the market at the moment. 

I am trying to calculate a valuation - I'm breaking down building value, updates, equipment / inventory and working with seller currently on gathering numbers in regard to the business over the past 3 years to come up with a valuation.

@Shaheen Ahmed- thanks - if you plan to live in one of the units - there are conventional loans that allow as little as 5% down .....or  you can also use a FHA loan .....if you plan to not live in the property - the down payment will  vary based on the  property you buy - IF you havent already done so - get fully pre approved with a lender 

If it's non-warrantable you will not be able to get conventional financing on it so you may run into difficulty there.

Areas with lower sales volume and inventory are often highly desirable but provide few potential opportunities for flips and have a ton of competition.

If you decide to use leverage you have to use non-recourse loan since you are considered to be a 'disqualified person' and therefore providing personal guarantee with conventional loan would not be allowed.The $50K or 50% of the balance limit you are referring to is applicable for a Participant Loan - that is if you personally need cash you are allowed to borrow from your 401k using those guidelines.

PMs openly talk about how they would cut prices to $1/night as the inventory is perishable.

Despite the hurdles, the median time to contract has increased by 12.90%, showcasing the market’s resilience and adaptability in the face of challenges.With active inventory soaring by 30.70% and the months supply of inventory climbing by 37.5%, it serves as a gentle reminder that in the realm of real estate,a delicate dance between supply and demand, opportunity and adversity.Palm Beach Townhomes & CondosNow, let’s shift our focus to Palm Beach’s bustling streets, where townhomes & condos exude an irresistible allure, merging urban chic with coastal tranquility.

DSCR lenders make their own guidelines that can be similar to conventional loan guidelines but are often different as the DSCR lenders generally sell their loans after closing to replenish their cash to investors who have different guidelines depending on the investor pool.