New to Real Estate · Oxford, MS · Member since 2018 · 20 posts · 6 votes
I want to fund my first deal and have money down. I met with a local bank that has commercial rental loans on a prime rate + 0.75% on a 5 yr fixed, 15% down, and amortized over 25 yrs. However, the after the 5 yrs it is adjustable with no cap.
It is a SFH that is 3/2 about 1250 sqft. Minor work to be done inside. Have to repair or replace fence in back yard. The purchase price would be 85-90K, rent for $1200 and expenses a little over $1000.
Rental Property Investor · Caledonia, IL · Member since 2015 · 289 posts · 213 votes
8y
@Casey Barickman
Why r u going commercial?
Fannie : Freddie can get u fixed rate - terms for the life of the loan . Down payment issue perhaps ? I would discuss with local lender who specializes with investors .
Congrats on your first purchase !
Investor · Grasonville, MD · Member since 2017 · 453 posts · 415 votes
8y
@Casey Barickman I had a similar rate quoted in Maryland but it was fIve year fIxed , prime +1 amortized over 25 years but there was a cap at I believe 9%.
New to Real Estate · Oxford, MS · Member since 2018 · 20 posts · 6 votes
8y
@Chris Youssi
No reason, just want some feed back about other people’s experience. Also thinking about building a long term relationship with the small community bank. They are a portfolio lender and may come in handy as I grow this business.