Financing for a 4-unit multi-family in MI
Good Evening Bigger Pockets!
I am seeking some guidance on ways to finance a 4-unit in central Michigan. I was just turned down for a residential 30 yr. because the way Fannie and Freddie apply the debt/income ratio. Tomorrow I am going to meet with a local commercial lender to see if a 5/1 Arm or other commercial options are logical, after that I was going to pursue seller financing. I don't have any rich uncles either. Any advice and guidance is very appreciated. Below are my financials and the properties.
Me:
credit score: 800+
Debt: $0
Income: 70K yr
expenses: $2,100
Current Mortgage: none, currently rent
money to invest: 100K
Property:
Purchase Price: $170,000.00
Purchase Closing Costs: $1,000.00
Estimated Repair Costs: $20,000.00
Total Cost of Project: $191,000.00
After Repair Value $200,000.00
Monthly Income: $2,950.00
Monthly Expenses: $2,003.96
Monthly Cash Flow: $946.04
Pro Forma Cap Rate: 9.57%
NOI: $19,147.00
Cash on Cash ROI: 20.64%
Purchase Cap Rate: 11.26%
Down Payment: $34,000.00
Loan Amount: $139,400.00
Loan Points: $0.00
Loan Fees: $3,400.00
Amortized Over: 30 years
Loan Interest Rate: 3.800%
Monthly P&I: $649.54