I own a stabilized portfolio of SFR rental homes in Gary, IN. I think the government should identify areas (much like Opportunity Zones) to create lending programs to support community banks. For risk adverse local banks, there is no appetite to lend into their own communities. This seems crazy to me. The government should help. Thus creating liquidity in troubled markets and opportunity for reinvestment back into these communities. After all, the majority of my tenants have section 8 vouchers. Section 8 requires periodic inspections and various other conditions to protect the asset and tenant. Makes sense to me.

I've considered various hedge fund lending options. However, most of these lenders require a minimum appraised value of more than 60k. And because of the low values, the fees charged from these lenders are exorbitant in relation to the home prices. 

I live in Denver, CO. These homes are in Gary, IN. 

I work with a local bank Centier Bank and this year they had a program for investors and they allow lower purchase prices. The loan I got through the neighborhood program was for a rental with a purchase price of 31,000 in Gary.

Hi Deana, its been a couple years but the last time I checked with Centier there was a limit of 10 properties financed. Is that no longer the case?

@Micah Kohls I recently worked with Centier and was told the bank would lend up to 6 properties. Nevertheless, I had an excellent experience with them.

Hi Bernando, thanks for the heads up. But that's the best I've heard of and there's a problem with that. I live in Denver, CO. If I had a SFR portfolio in Denver to finance then every bank would be interested in financing....in fact, they would be fighting over it.