Mortgage for new LLC

[Prash Sun]

I am a new investor who is in mid 30’s and saved up enough to put $60k towards a investment purchase. My question is,

how do I go about getting a loan to purchase a investment property in neighboring state. I liked a SFR for $130k and interested in renting it out via AirBNB or traditional rental( to be decided). What kind of banks will offer a loan up to 60%LTV?

The LLC is a partnership between me and my wife while I am the sole earner of the family. I have excellent credit and willing to guarantee the loan. With my calculations, I should be able to pay-off the loan in about 1-2years in my own money rather than use the rental income. Basically want to establish assets under LLC for long-term investing. May be buy multiple properties under same LLC.

Does the above sound like a good plan? Sorry fairly new here.

Thanks

[Steve Vaughan]

Originally posted by @Jay Hinrichs:

Originally posted by @Steve Vaughan:

 Or, could shoot you up to 850. A FICO score is an I love debt score. 15mil is a lotta love ;)

Glad you commented as well. Didn't want him thinking that over-sophisticating a rental house purchase with an LLC was going to give his wife magic credit history or something.

before I exited the rental game I had 12 fico reporting loans for my rentals.. I have never missed a payment in my entire life. and with all that reporting debt my fico had a hard time getting above 700  and sometime above 680.. I sold them all in the last 3 years and now I only have one small mortgage on my personal resi and I can now get into the middle 700s  .. so I have no clue how this all works.. seems to me small balance commercial credit does pretty good for people.  its a real mystery though.. although at this point even though my construction lenders pull my credit its not the determining factor..  CASH balance sheet experience are the main drivers..  Of course you cant be a 500 fico but you know what  I mean

 Yeah, the score algorithm is a mystery by design.  Your 700 score with 12 rental mortgages was probably due to high credit utilization.  High mortgage bal at issue (credit available) to current bal ratio 

My wife and I got a loan in 2017 for the first time in 5 years. I let lapse and closed all of our credit cards  except my oldest one. We'd also paid off a bunch of mortgages.  Oh boy, we probably won't even qualify and have a 640 I was thinking.  

Nope, both of us were over 800.  The high to current mortgage balance ratio is what I think did it. Low utilization.  The closed credit cards and their available credit was peanuts ($140k or so) compared to paid off mortgages.  Who knew.  I'd rather my score be 0, meaning no debt of any kind, so I can flip the bird to the whole racket forever.