Open to loans but only if we net 10k a month after mortgage payments

Their commercial loan department is excellent to work with and they are willing to help you with all your financing needs!

The new mortgage on the new $340k duplex home which is an FHA loan is going to be a monthly payment of $2800 and we will refi ASAP (the current rate is 6.7%) when rates go down.We have done some nice improvements on the SFR and will be refinishing the wood floors before a renter moves in (July 1) so feeling like it's a great opportunity for the right long term renter and we plan to screen prospective tenants well.We are taking a $20k HELOC on the SFR for the downpayment and plan to pay that off within 12-18 months.

If you're financing the new purchase then that loan will have to take first position. 

You may have already ran these numbers, I would first see what the balance of the subject to loan and the PI payments.

Those two together create equity.Here's what I want you to understand about “buy and hold” residential real estate:Let’s use a single family home with a property value of $300,000Let’s use an initial loan amount of $240,000Let’s use an interest rate of 7.25%And I’m going to give you $150 of cash flow per monthUse a 5% appreciation amount for your property per yearLet’s see what happens after 5 years:After 5 years…$150 of cash flow per month = $9,000Your mortgage has been paid down to $227,000 = $13,000Your property is now worth $382,000 = $82,000So that’s $9,000 of cash flow, $13,000 of principle buy down, and $82,000 of appreciation.

Full repayment of loan will consist of balloon payment plus 10% net profit of sale.

The issue with our loan would be that there is no collateral since our loan amount would be more than the land value itself if anything were to happen.

What are the loan terms?  

They are looking for an exit for their loans. - Investors would be wise to look into stabilized bridge products with low prepayment penalties. - Prepayment options have become more flexible. - There are a lot more bridge loans for rental products, different than original conceptions of bridge products.- Lenders want to work only with sponsors/operators they are already comfortable with- Capital is meeting the needs of investors, more flexible