Rental Property Investor · Fremont, NE · Member since 2016 · 23 posts · 5 votes
Does anyone have any banking contacts in Nebraska that are rental property friendly? Most bank I contacted for my last deal wanted 20%. I was itching so bad to buy my last property that I just went traditional. The deal was 20% down with a 5.1 ARM at 5.25%. Not the best deal but it's cash flowing $2.75 a month for a single family home. Any contact advice would be appreciated. FICO score is not a problem at over 800. I'm tired of putting all my cash as a down payment. Any suggestions?
Rental Property Investor · Hastings, NE · Member since 2018 · 57 posts · 53 votes
7y
@Louie Masters - I use Pinnacle Bank. I was required to put down 20% as well. If you are making improvements, you can always wait a year or so and either refinance (could be costly) or pull money out via a HELOC if allowed. You can also have several properties spaced over several years where the 5 year lock term comes up each year. For example:
Property A comes up in 2024
Property B comes up in 2025
Property C comes up in 2026 ... etc.
This way each year you could refinance with a new appraisal and 5 years work of mortgage pay-down and probably pull your initial investment cash back out. Sure you have to front the 20% initially on the first 4-5 properties but as you accumulate more and cash flow increases this will become easier.
Rental Property Investor · Fremont, NE · Member since 2016 · 23 posts · 5 votes
7y
@Ryan Mahoney
Thanks for the advice Ryan. Yes I planned on refinancing in a year or two. I’m just having a difficult time finding investors who are willing to front the cash up front. Having to put 20% down on each property takes time. I am also using pinnacle bank. I have a relationship here locally. Have you used anybody else?