Looking for first Commercial loan
I recently purchased 2 side by side 4 plexes. They are zoned commercial even though they were purchased in 2 separate REO deals from the bank. I bought them for cash and will be rehabbing them over the next month. Once they have be completed and rented out, I will be looking to refinance the two properties as one commercial. The value of all 8 units should be around $200,000 - $250,000. I will be looking to obtain my first commercial financing loan. I am hoping to obtain a 70% LTV on this property.
Can anyone help me with some basic ideas about if banks would give me the financing, what rate and term would be good, how long the refinance will take and what average closing costs will be?
Some additional info:
8 Units should rent for $650 each
Assuming 7 of 8 units rented, monthly inflow = 4550
50% rule says my loan should be no more than $2275 per month.
Assumptions:
Min Loan = 70% of 200K = 140K ($979-1128 per month)
Max loan = 70% of 250K = 175K ($1223-1410 per month)
based on a 30-20 year term @7.5%
Management fee = 10% of rents ($445 per month)
RE Taxes are = $8400/yr ($700 per month)
My numbers all seem to work fine, however, i am more interested in the questions above about "Commercial Financing".
Thanks in advance