Hey BiggerPockets family,I was just approved for an owner occupant, Fannie Mae, 5% down with a purchase price of $1.3 million for a 4plex in the Phoenix Metro of ArizonaMy middle FICO credit score is 759My current DTI debt to income ratio is 30%I have enough down payment, closing costs for the subject property, and enough liquid reserves for all 10 of my apartment buildings totaling 45 units in PHX Metro AZmy mortgage lender quoted me with a rate at 8.125% with me paying 0.156 points totaling $1,920My question is,does this 8.125% interest rate sound reasonable for an owner-occupied fourplex 5% down Fannie Mae conventional loan as of March 27th, 2024, at 1700 hours?

I searched and found one HELOC lender that handles investment properties and below are some of the requirements.Typically a credit score of 720 or greater.A maximum loan-to-value ratio of 80%.Cash reserves covering six months or more and for rental properties, proof of long-term tenants.A debt-to-income ratio between 40% and 50%.There are higher interest rates on an investment HELOC than on a residence.1031 ExchangeAnother consideration is whether you want to keep the property.

Getting 100% of rental income, appreciation, loan pay down, and depreciation for 20% down makes 10% annual roi easy to destroy.  2.

Here is my understanding... the underwriter was a hard money lender who required the house to be put into an LLC initially so that he could use the estimated "rental" income as the way to get approved for the loan.

It probably doesn't include income from the 5th or 6th unit if it's supposed to be a loan for 4 units right?

The city's strong rental market driven by a growing population ensures a steady income stream and with affordability as well as a median home price below the national average, Cleveland stands out as an attractive option for those seeking a promising return.

For flipping my accountant recommended an S-Corp (flipping income is handled differently and so is insurance).

Maybe they mean your net, net income? 

Could the rental income justify the price?

I offer them a lump sum and monthly income.