Investment Loans under 75k

Indianapolis, Indiana
Creative Real Estate Financing
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Investment Loans under 75k

Evan Smith
Investor · CA · Member since 2024 · 7 posts · 2 votes

I'm looking to purchase several investment properties valued under $75,000 or less. Ideally they would be DSCR loans, but can be flexible with the price point issue.

 I know this price point is below most lender’s minimal loan amount so I’m asking to see if anyone knows of any lenders that will accommodate the lower loan amount.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    10mo

    You should be able to finance these as long as the value and purchase price are at $75k or higher. 

    Anything less and you will need to go local 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 514 votes
    10mo

    There are DSCR loans under $75,000 as long as the property appraises for at least $75,000. It has to be in rent ready condition- not in fix and flip condition. This program is for 1-4 units.

    Happy to connect to discuss further. 

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 961 votes
    10mo

    @Evan Smith

    Evan, once you get under 75k most DSCR lenders tap out. The easiest routes I see investors use are small local banks or portfolio lenders who don't have strict minimums, or bundling a couple properties together to hit the threshold. Some also use HELOCs/PLCs or get creative with seller financing on these low-price deals. If you ever look to expand into the Midwest, happy to point you toward lenders who handle this price point all the time.

    [email protected]614-418-6081
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    10mo

    Finding a lender is only one part of the equation. There are many other things you should be evaluating before purchasing $75,000 properties.  It’s important to think through how you would handle major capital expenditures when they arise—items like the roof, HVAC, plumbing, or electrical. Management approach matters as well: this asset class can be difficult to operate when relying entirely on third-party vendors, so it’s worth considering how hands-on you plan to be.

    Turnover costs are another area that often gets underestimated, and it’s important to evaluate how realistic vacancy and make-ready expenses impact your pro forma over time. Finally, the exit needs to be considered. Who is the likely buyer when you go to sell? If it’s an owner-occupant market at that price point, are you accounting for the likely 5–6% seller assist and the practical challenges of repair requests? If not, and the natural buyer is another investor, why are they paying retail?

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  • Frank PyleBusiness Member
    Specialist · USA · Member since 2024 · 279 posts · 130 votes
    10mo

    Evan — are you buying these in Indy or staying in CA?

    I'm based in Indianapolis and I work mostly with out-of-state investors. You're right that sub-$75k gets tricky because a lot of DSCR lenders have minimum loan amounts, but there are still ways to structure it depending on how many you're buying, your down payment, and whether you're open to doing them as a small portfolio instead of one-off loans.

    [email protected]317-501-3467
    Frank Pyle at ExP Realty
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    NEXA Lending- Investors Edge Concierge
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  • Jake YuskaitisBusiness Member
    Lender · New Jersey, USA · Member since 2022 · 254 posts · 67 votes
    10mo

    most lenders are minimum 100k. some 75k. under 75k you'll most likely have to go to a local bank.

    [email protected]551-287-6884
    Frontier Funding LLC533 Reviews
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  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 131 votes
    10mo
    Quote from @Evan Smith:

    I'm looking to purchase several investment properties valued under $75,000 or less. Ideally they would be DSCR loans, but can be flexible with the price point issue.

     I know this price point is below most lender’s minimal loan amount so I’m asking to see if anyone knows of any lenders that will accommodate the lower loan amount.

    As others mentioned, this is a tough market. Generally 75k purchase price is the bottom of the market (slightly less may be doable).
    0Reply
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