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Jordan Brauchler
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Help financing rural property in East Tennessee

Jordan Brauchler
Pro Member
Posted Dec 6 2022, 09:09

Hi all,

i have a property under contract in East TN. I'm looking to finance using DSCR and possible reno. Many lenders I've spoken with are saying they won't finance a property considered "rural". Can anyone suggest a lender who might not have a problem with that distinction?

Thanks

- Jordan 

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Reid Chauvin
  • Lender
  • Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA
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Reid Chauvin
  • Lender
  • Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA
Replied Dec 6 2022, 09:13

@Jordan Brauchler - the challenges in particularly rural areas are finding appraisers and appraisers finding comps. Can you provide more info on the property and your objectives (i.e. buy/hold or flip)?

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Jordan Brauchler
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Jordan Brauchler
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Replied Dec 6 2022, 09:43
Quote from @Reid Chauvin:

@Jordan Brauchler - the challenges in particularly rural areas are finding appraisers and appraisers finding comps. Can you provide more info on the property and your objectives (i.e. buy/hold or flip)?


 My objective for this property is to flip it and 1031 into another. It's located in Greenville. I have it under contract for $103k. Contractor quote for reno is ~$50k. I have obtained an appraisal of $230k arv.

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Lyndsay Zwirlein
  • Lender
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Lyndsay Zwirlein
  • Lender
Replied Dec 6 2022, 10:33

How many projects have you done in the past 3 years?  We might have a solution for you.

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Jordan Brauchler
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Jordan Brauchler
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Replied Dec 6 2022, 10:49
Quote from @Lyndsay Zwirlein:

How many projects have you done in the past 3 years?  We might have a solution for you.


@Lyndsay Zwirlein:

I currently have 2 long term rentals and 1 short term rental I purchased in June 2022. I also completed my first flip in 2021. Although, I prefer to buy and hold as a general rule, but the property currently under contract would finance other projects.