Rates tend to be 25 to 50 basis points above commercial (5+ unit) apartment building loans, and 50-100 basis points above residential (1-4 unit) loans.

That would be glorious...lol quite honestly to get a longer contract and have them turn into longer term tenants provided they are good of course.

When flipping, the most important thing is understanding the available loan programs for potential buyers.

A few things to note-Loan payoff isn't part of the calculation of what taxable gain will be. 

My point being, all things constant, I usually see an appreciation of about 1-3% in addition to the loan being paid down creating equity.

I put a new build under contract early this month, and are now working on the loan with a credit union.

They are valuable and provide insight on how to decide on how much to without for capex, maintenance, vacancy etc.

Conventional loan, 25% down at ~7% interest rate How did you add value to the deal?

From a financial perspective, the numbers look attractive—many of these properties show a Cap Rate of 6%–8% or more, which is quite decent.For example, if a Dollar Store property is listed at $1.2 million with an average Net Operating Income (NOI) of $90,000 per year, financing 50% with a 6.5% APR, loan would still result in positive cash flow from day one.

Biggest piece of advice: Don’t overthink it—your first deal won’t be perfect, but it will be your best teacher.If you ever want to talk through loan options or strategies, happy to help.