Anyone have experience financing smaller properties??
Hello all! I am a medical sales rep and real estate investor in Maryland. I have owned 37 units over the last 6 years and recently have sold a couple big deals to get out of some partnerships and older properties needing renovations. I currently have 10 units but this latest purchase has me feeling like a rookie!
I bought a smaller, wildly desirable location, studio single family in a downtown area in Havre De Grace, Maryland 6 months ago. I paid $60,000 cash for the off market deal, which was probably 25% discounted. I had a relationship with the owner. After about $7,000 in repairs I have had a renter in place for 3 months, going on 4, paying $1,000 a month.
I have been trying to get a long term loan or even a line of credit against the property and have had no success. The typical response I have been getting is that the deal is too small.
Anybody have experience with financing on smaller properties? I have been thinking of looking at private lenders, even though the rate will be a little bit higher. I did not expect to have a lot of my working capital sitting in this place.