Good Morning everyone! I'm in the middle of a flip right now and ran into some unexpected major expenses so I'm considering holding onto this property for a few years as a rental then possibly selling in 5+ years. I purchased the property for $138k (including closing costs) and the renovations will come in around $90k. The ARV of this property should be $265k. If I seek a conventional 30-year fixed mortgage I believe the LTV limit is 75% (which would leave me with $30k invested in this deal). I really don't wish to leave that much capital in this deal if possible so I'm wondering if anybody has seen a lender go to 80-85% LTV in an non-owner-occupied investment property. Thanks in advance everyone!

Originally posted by @Kenneth Croisetiere :

Good Morning everyone! I'm in the middle of a flip right now and ran into some unexpected major expenses so I'm considering holding onto this property for a few years as a rental then possibly selling in 5+ years. I purchased the property for $138k (including closing costs) and the renovations will come in around $90k. The ARV of this property should be $265k. If I seek a conventional 30-year fixed mortgage I believe the LTV limit is 75% (which would leave me with $30k invested in this deal). I really don't wish to leave that much capital in this deal if possible so I'm wondering if anybody has seen a lender go to 80-85% LTV in an non-owner-occupied investment property. Thanks in advance everyone!

You won't find that in a conventional loan. Maybe a local credit union, but I doubt it. I'm thinking you're going to max out at the regular conventional ltv of 75%. There are alternatives like an interest only loan through a national hard money lender, but you'll end up spending a good amount in points and then closing costs for a refinance after the renovations are complete. You will probably find that it's more cost effective to either sell the property or just leave the 30K in there if you're going to keep it.

I've got a lender that will do a portfolio loan of 80 LTV (I just did it twice late last year) PM me and I can get you the contact info

A few issues with this any long term loan will be based on the as is not the ARV. so you would be looking at a loan of around 103k (Looking at the purchas price as the as is value)

Unless you did a short term ARV Loan in which you could take out up to 75% of the ARV 198K

The only lenders that I know that will do over 80% of the LTV on 30 year loans are portfolio lenders and they have a property minimum on those programs

Best of luck on this one tho 

Positive energy your way