That additional risk is reflected in a loan portfolio (secondary loans or not) by reducing the LTV to 75% but this is not a hard rule in a portfolio loan, but generally accepted as being a more prudent banking practice.There is no seasoning requirement, generally, by any regulator but by loan guarantors and mortgage insurance that may cover a loan portfolio obtained by the lender or in hedging arrangements.

Doesn't at all surprise me the banks are trying to reduce their risk.

You incur capital gains when you sell it and you need to reduce your basis by the depreciation you have been taking over the years as the LLC has owned it to determine your capital gains.Joe

I have an equity partner who is willing to put up the capital if I just manage it...then we both split equity & earnings after his 10% required return.All I've had to this point is residential single dwellings....taking a known calculated risk with this 8 plex but I'm up for the challenge.

Some lenders are willing to work with you by reducing the amount owed or making other arrangements.

If it works, you're borrowing at a low rate, further discounted by your tax rate, and earning a higher rate in an alternative investment.

I mean think about it, once a lender acquires the property they have it listed with an agent, which most of the time lists the property at or close to market and reduces every 30 days a little to sell.

Other expenses can be booked there to offset the income which would be better to reduce your SE income tax effect.

You might could save a few bucks by acting as the contractor and just hiring out the labor, but you will earn any money you save (and you will need to speak Spanish if you hire a roofing crew in the south).JMac

I might even ask if they want to go for 10 years, again at a somewhat reduced rate.