Financing options for my investment property

[Mohan Dag]

It is my first investment property purchase contract for a duplex. I am looking for my options for financing for better cash flow per month. The property is worth 110k and I am willing to put down 20%. I have 800+ credit score and no debts. Since I recently switched jobs from fulltime to contracting, I am not qualified for a conventional loan with any big banks. As for commercial loan, I am getting 15yr amort with 7yr balloon at 7%. Are there any other options for me to get better rates to increase my cash flow?

[Stephanie P.]

Take that deal.  I doubt it will be the same when you get to closing, but take that deal.  7% for 7 years with 20% down with a 15 year amortization on a commercial property and you're newly self employed; particularly with that loan amount???  What's the prepay?

We could do:

• 70% ltv (30% down seasoned for 60 days)
• on an 8 year fixed with a 30 year amortization to maximize cash flow
• minimum loan amount is 75K
• 8.25% with a cost of 4 points then it goes to WSJ prime plus 4 or the floor rate
• 5 year prepay
• No tax returns required/No pay stubs required

Actually, ours looks pretty good in comparison after looking at the cash flow numbers.  

PM me.

Stephanie