Thoughts on a Blanket Loan?
Hello!
This is my first post so my apologies in advance if I break forum protocol. So here goes:
We are in talks to purchase 2 mixed use properties.
#1) Cash flows well and has a LTV of about 1.42
Commercial unit has long term lease in place
(8) 1 br apartments rented about 10% below market.
#2) Doesn't cash flow with a LTV of about 1.18
3 commercial units with lease terms of 3 yrs, 1 yr and Month to Month, respectively
(2) 3 br units, one of which will be delivered vacant and one which is 50% below market
The market is very hot in this area (Hudson County, NJ) and vacancy stands at 2-3%.
Would a blanket loan be ideal in order to minimize the amount of down payment? I'm trying to do both properties separately but the bank is asking 37% down for the second property (probably not helped because of the short term commercial leases).
Forgot to add that the 2 properties are literally 1 block apart, if that makes any difference...