80% LTV lender for Duplex

[Adrianna Harris]

Hi everyone, 

I am just starting my real estate journey and purchased my first investment property (duplex) in May 2022 in Buffalo New York. It was a complete rehab! 

First lesson learned: RUN YOUR NUMBERS!!!!

ugh I did not do my due diligence on this one. I trusted my "investor friendly" agent when he told me that this would be a good deal. He is one recommended here on BP and I was so eager to get started that I jumped in without doing my homework properly. 

Here are the number:

purchase price- $114

Rehab- $115

ARV: $260

Does anybody have any recommendations for lenders that will do 80% LTV fixed for 30 years (is that possible?) ?

I called one DSCR lender but they said they could only do 70% LTV.

any guidance would be appreciated. 

[Matthew Crivelli]

I think your issue lies in the fact that your rehab budget exceeds the properties purchase price. As a new investor, this is not usually the type of numbers you or your perspective lender wants to see. I would be looking for rehab projects that don't exceed 40% of the properties as is value. The numbers you presented would be looked at as high risk. 

Also you are not looking for a DSCR loan, as these are long term loans. You want a short term rehab loan. I would find a good lender who is willing to walk you through these loan products so you fully understand what they are, how they work, and how to properly use them. @Adrianna Harris