Trying to buy a rental property in Baltimore. I’m starting to look at different lenders and loans, and I’m starting to feel a little overwhelmed with all the numbers and options. What should I be looking at when evaluating which loan to use? (I’m primarily looking at non bank conventional lenders)
@Kristopher Lamy, a few questions that could help direct you here:
What's the purchase price?
How many units is the property/property type?
Does the property need rehab or is it rent/ready (turnkey)?
Basically, I'm trying to ascertain what the loan amount could potentially be & what your investment strategy is.
@George Despotopoulos hey thanks for the reply. Asking price is 84k. Its a turnkey row home 3 beds 1 bath.
@Kristopher Lamy - the first hurdle is finding a lender that has a minimum loan amount under $75k. If you've found that then what you need to establish is rate (and whether it's fixed or adjustable (and if it's adjustable what the fixed rate is, when it adjusts, and what index + margin they use), then you should ask about fees (upfront fees, fees during underwriting, closing costs (title/recording), etc. Another important factor is their ability to close on time (or ahead of schedule). No real way to gauge that other than what they're telling you and reviews/feedback from previous borrowers.