Two properties zoned commercial using as residential LTR

Two properties zoned commercial using as residential LTR

Rental Property Investor · Boone, NC · Member since 2014 · 5 posts · 0 votes

I have acquired two properties that are currently zoned commercial. The zoning board does allow these properties to be used as LTRs with up to 4 people in each. I am having issues with lenders either not wanting to loan because I am using it as residential while zoned commercial, or because it is less than 5 units for commercial lenders.

Info:

House 1 4b/3b rented at $3200/mo

House 2 2b/2b rented at $1100/mo currently and $1800/mo in August

Self-valued at $800k together, $550k and $250k respectively.

Looking to cash out refinance DSCR at $500k 62.5%

Any help is much appreciated

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  • Boise, ID · Member since 2023 · 11 posts · 0 votes
    3y

    Hi @Steven Yow, I may have an option for you if you want to send me a message.

  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    3y

    @Steven Yow then get better lenders  This is a pretty easy scenario.  Do you have other real estate investors in your area that you know?  Who do they use for these types of transaction?  Your existing network will help you with finding good vendors.

  • Rental Property Investor · Boone, NC · Member since 2014 · 5 posts · 0 votes
    3y
    Quote from @Andrew Postell:

    @Steven Yow then get better lenders  This is a pretty easy scenario.  Do you have other real estate investors in your area that you know?  Who do they use for these types of transaction?  Your existing network will help you with finding good vendors.


     That is what I do not understand, this should be pretty simple. I word it just like in my post, is there a better way to communicate this? Thanks for your help.

  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    3y

    @Steven Yow some lenders aren't very good with what we do as investors.  Some are.  You just need to get in front of the right lenders. 

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