Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
I have my eyes on a triplex in Florida and looking to see if there are any reputable hard money companies willing to do around 10% down. Looking to close on our before 7/27/18.
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
8y
Can you share some numbers on the deal? Purchase price, as-is value, rehab cost, ARV? What does your experience look like?
There are lenders out there who will finance 90% of the purchase price and 90-100% of the rehab. Something to keep in mind is that they'll still want you to have 20% of the total cost as part of your liquidity to make sure you cover cash to close, interest reserves, and initial rehab cost.
Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
8y
Buy and hold. There are current month to month tenants but I'm going to contract a marine crew housing company to rent per bed for yacht crews since it's close to the water. My partner is doing this with a triplex in the same neighborhood.
Lender · Chicago, IL · Member since 2015 · 608 posts · 70 votes
8y
Topically for buy and hold you would need at least 20% down. Does it need any rehab? If so then you may be able to get 90% loan to cost depending on experience, credit score, loan amount etc...
Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
8y
Can you share some numbers on the deal? Purchase price, as-is value, rehab cost, ARV? What does your experience look like?
There are lenders out there who will finance 90% of the purchase price and 90-100% of the rehab. Something to keep in mind is that they'll still want you to have 20% of the total cost as part of your liquidity to make sure you cover cash to close, interest reserves, and initial rehab cost.
I have my eyes on a triplex in Florida and looking to see if there are any reputable hard money companies willing to do around 10% down. Looking to close on our before 7/27/18.
Melanik
Have you put together the numbers yet? What does it need for rehab? How are comps in the area and what's the expected, based on reliable comps, ARV?
That money's out there, but as others have said, at 90% you'll need solid liquidity and experience.
Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
8y
The neighborhood is going through a massive development phase right now. Literally on the same street there are close to million dollar homes if not a million dollars. There are only about 5 original small houses left including this triplex. Asking price is $390k. 2/1 is vacant, 2/1 rents for $1300, studio rents for $800. Both are month to month. Did a walk through today and it needs new bathrooms, kitchen cabinets and appliances, Windows, paint, and landscaping. The Roof, water tank, and HVAC are fairly new. ARV is around 450k on the conservative side.
I've flipped a few properties with a couple in the 500k-600k range.
Lender · Colorado Springs, CO · Member since 2018 · 241 posts · 98 votes
8y
@Menalik Archer, if you were flipping the property, 80%-90% of purchase price is available along with 80%-100% of the rehab amount. However, your exit strategy would need to be either sell it or rent each unit out on a long term lease. If your plan is to rent per bed or per room, I'm unaware of anyone making those types of loans.
I haven't seen any HML who would do a loan for more than 75% of the ARV, even those that advertise 10% down (90% LTC). If the property required no work and you wanted to put 10% down, you can't be more than $375k all in (purchase + rehab) in order to achieve this.