Lender Options for a nice BRRR

Real Estate Broker · Flowood, MS · Member since 2019 · 35 posts · 26 votes

I picked up a lovely duplex in Clinton, MS. It should be fixed and rented within a month or two. Can anyone recommend a lender that offers refinancing for investment properties with a 30-year amortization? It seems the only way to make the numbers work decently with these interest rates.

[email protected]601-238-6620

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Erik EstradaBusiness Member

Lender · Los Angeles, CA · Member since 2022 · 7k+ posts · 1k+ votes

Quote from @Ryan Porter:

$170,000 ARV

I would like to pull $130,000. I am fine doing a 5-year ARM with a 25 or 30-year amortization rate. ( I hope I am using the correct lending terms lol).

The lease will be for $1.700

$130,000 would be a bit over 75 LTV. While you can do an 80 LTV cash out, the terms won't really work well.

Assuming you have a FICO over 720 and the taxes and insurance aren't insanely high, you should comfortably be able to cash flow at a $127,500 Loan Amount. Rate would likely be at 6.875-7.375% depending on your prepayment penalty period and seasoning period.

[email protected]818-269-7983

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Joseph Chiofalo
Banker · Henderson, NV · Member since 2023 · 317 posts · 74 votes
1y
Hi Ryan,
How much were you looking to borrow and how much is the value of the property?
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Ryan PorterPro Member
OP
Real Estate Broker · Flowood, MS · Member since 2019 · 35 posts · 26 votes
1y
$170,000 ARV
I would like to pull $130,000. I am fine doing a 5-year ARM with a 25 or 30-year amortization rate. ( I hope I am using the correct lending terms lol).
The lease will be for $1.700
[email protected]601-238-6620
0 Reply
- Erik EstradaBusiness Member
  Lender · Los Angeles, CA · Member since 2022 · 7k+ posts · 1k+ votes
  1y
  Quote from @Ryan Porter:
  
  $170,000 ARV
  I would like to pull $130,000. I am fine doing a 5-year ARM with a 25 or 30-year amortization rate. ( I hope I am using the correct lending terms lol).
  The lease will be for $1.700
  
  $130,000 would be a bit over 75 LTV. While you can do an 80 LTV cash out, the terms won't really work well.
  Assuming you have a FICO over 720 and the taxes and insurance aren't insanely high, you should comfortably be able to cash flow at a $127,500 Loan Amount. Rate would likely be at 6.875-7.375% depending on your prepayment penalty period and seasoning period.
  [email protected]818-269-7983
  LuxePrivate Investments LLC 572 Reviews
  Website View Page
  1 Reply
- Ryan PorterPro Member
  OP
  Real Estate Broker · Flowood, MS · Member since 2019 · 35 posts · 26 votes
  1y
  Quote from @Erik Estrada:
  
  Quote from @Ryan Porter:
  
  $170,000 ARV
  I would like to pull $130,000. I am fine doing a 5-year ARM with a 25 or 30-year amortization rate. ( I hope I am using the correct lending terms lol).
  The lease will be for $1.700
  
  $130,000 would be a bit over 75 LTV. While you can do an 80 LTV cash out, the terms won't really work well.
  Assuming you have a FICO over 720 and the taxes and insurance aren't insanely high, you should comfortably be able to cash flow at a $127,500 Loan Amount. Rate would likely be at 6.875-7.375% depending on your prepayment penalty period and seasoning period.
  
  The taxes and insurance are both around $1,000 per year each. I would be fine doing a 75% if that helps more than 80% LTV.
  [email protected]601-238-6620
  1 Reply
Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 695 votes
1y
Quote from @Ryan Porter:

I picked up a lovely duplex in Clinton, MS. It should be fixed and rented within a month or two. Can anyone recommend a lender that offers refinancing for investment properties with a 30-year amortization? It seems the only way to make the numbers work decently with these interest rates.

You have lots of great options here I would recommend getting together with an experience investment loan broker who can compare different investment products that can accomplish this objective.
[email protected]860-538-3672
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- Ryan PorterPro Member
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  Real Estate Broker · Flowood, MS · Member since 2019 · 35 posts · 26 votes
  1y
  Quote from @Devin Peterson:
  
  Quote from @Ryan Porter:
  
  I picked up a lovely duplex in Clinton, MS. It should be fixed and rented within a month or two. Can anyone recommend a lender that offers refinancing for investment properties with a 30-year amortization? It seems the only way to make the numbers work decently with these interest rates.
  
  You have lots of great options here I would recommend getting together with an experience investment loan broker who can compare different investment products that can accomplish this objective.
  
  I was hoping to connect to a few on here. Thanks!
  [email protected]601-238-6620
  0 Reply

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