Looking for financing for 10 single family rental purchase

Looking for financing for 10 single family rental purchase

Josh BuchananPro Member
Rental Property Investor · Sylva, NC · Member since 2019 · 37 posts · 26 votes

Looking for options to finance 8-10 single family long term rentals from an individual. Total purchase price of around $550k. Properties appraise for around $625k. I can put 25% down but a large portion of that is from a HELOC. Properties are in NC. 740+ beacon, $100k+ W2 job(15 years). I am open to a short term loan so I can increase rents or a 30y fixed(preferred). One lender loved the deal except a couple of the properties had a sales price under $60k and they didn't like the HELOC down payment. Any suggestions on lenders that might do this? Thanks.

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Lender · Boston, MA · Member since 2019 · 417 posts · 150 votes
7y

@Josh Buchanan you can write check to yourself from Heloc and put in bank for 2 months, that will get around the downpayment issue.

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  • Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    7y

    And the seller isn't willing to carry back any of the debt? It may be hard to get a loan where the down payment is also borrowed as you don't technically have any skin in the game (or not much)

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    7y

    I have spent a lot of time gathering lenders from BP posts.  I was searching for the terms: aggregate or blanket. 

    Here are the few that say they do aggregate or blanket type mortgages:
    Upen Patel can do a blanket at Federal Savings Bank.
    Dayton Capital, FOAC bundles 7+, Corevest or Colony American bundles 5+, Visio 3 to 7 in a bundle, Conventus, and  Mofin will bundle. 

  • Josh BuchananPro Member
    OP
    Rental Property Investor · Sylva, NC · Member since 2019 · 37 posts · 26 votes
    7y

    Thank you for those suggestions. I will check them out. 

    Seller may be willing to carry up to 25%. I wish I had done cash out refi now instead of the HELOC.

  • Lender · Boston, MA · Member since 2019 · 417 posts · 150 votes
    7y

    @Josh Buchanan you can write check to yourself from Heloc and put in bank for 2 months, that will get around the downpayment issue.

  • Josh BuchananPro Member
    OP
    Rental Property Investor · Sylva, NC · Member since 2019 · 37 posts · 26 votes
    7y

    Thank you for that advice. That will be much easier than closing my line and refinancing. 

  • Josh BuchananPro Member
    OP
    Rental Property Investor · Sylva, NC · Member since 2019 · 37 posts · 26 votes
    7y

    25% cash down issue solved, now what are my options? Issue I have run into is that several of the properties are around $60k sales price and my total loan is less than $500k. Both of these have been deal breakers with several companies. 

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    7y

    Now search for “low balance” mortgages

    1031 into bigger properties. Small loan balances can be problematic.

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