Investor · Jackson, OH · Member since 2014 · 42 posts · 20 votes
Hi everyone! This is my first post! I have been investing part time for about 8 years and it is time to get off the fence! I have recently seen small multi-family units with excellent cash flow. I took some credit hits early in my investing career, and I also have 7 loans on the books which are limiting my ability to purchase new properties. Does anyone have any suggestions on how to pick up these properties? Some of these have a debt coverage ratio of 4%. I have heard that 2% is very good so these would be fantastic!
Any help would be appreciated!
Real Estate Lender · Boulder, CO · Member since 2014 · 9 posts · 3 votes
12y
Hi Anthony,
In my local market (Denver) there are a few private money guys who will provide financing for 24-48 months. I have folks asking for this type of financing and if they have a 25%+ cash equity position they can usually find a local private lender after some searching (a family member recently used this option and it's worked out great for the past year until he refinances). Are these sub $100k properties?
I know there are a few national and regional firms that are providing landlord financing for small rental packages. I don't have any experience with them, but have talked with a few of them and it's definitely an interesting option if the package is in the 500k+ range. with good cash flow.
So, in short, 25%+ cash equity with strong cash flow and you should be able to shop a few people (or use a broker, but that's another story and generally avoided).