Advice needed in finding a loan
Hi BP Pros!
I’m having trouble identifying a loan that I won’t immediately be disqualified for.There is a confusing number of loan options and I have a few disqualifications for many (all?) conventional loans.Below I’ve laid out my scenario as brief as possible while including all the details.If you know of a loan that I wouldn’t be immediately disqualified for, let me know.I’m trying to narrow down what type of loan to apply for and with who so I don’t continue to stumble blindly and waste time.
The details:
Assets:
I own 4 units in the SF east bay area with no mortgage. For the last 3 years (since I bought it) I have been renting 2 units and using the other 2 for myself and my daughter.For the last 3 yrs I have not made a profit, but have broken even.The price of rents has skyrocketed here and I’d like to take advantage of that.If I rent out all 4 units I can gross about $8,000 a month and net about 4,500.
I also have more liquid assets but prefer not to sell them off if I don’t have to.
My credit score is very good –750+.
Plan:
My plan is to move about 2 hours away where housing is significantly less expensive, move into a single family fixer, rehab it over 2 years and then sell it or rent it depending on what the market is like. I’m looking for a property that is under $250,000, in a neighborhood that I feel fairly safe in. I can put up to 40% down.
I do my own property management and nearly all my own rehab.
Disqualifications I’m running into:
I don’t have a 2 yr income history, and having been a stay at home Mom, I don’t have the skills that jobs are looking for today.Currently I live off savings.By moving I can support myself with the $4,000 + per month off the 4 rental units.
The 4 units are held as an LLC and haven't shown a profit in the last 3 years.
Long range plan – To move out of the east bay, rent all 4 units, get a good cash flow for 2 yrs, dissolve the LLC and put the 4 units into my name, and at the end of 2 years I'll have a 2 yr income history and be in a much better position to get loans to buy and hold more rental property.My plan is to have enough rental properties to support myself and to put some money away for retirement.
I realize that with any loan I’ll pay a higher rate than someone with a 2 yr income history but I want to exhaust all my options for less expensive loans before I consider higher interest loans.
Just this morning I found on BP that I may be able to apply for some VA loans since I have a blood relative that's a veteran.I'll be researching that today but am not getting my hopes up that it will be easy or even possible.
Since I had such a hard time being brief, I’ll reiterate my question: Are there any loans/loan companies that you know of that wouldn’t immediately disqualify me?
Thank you in advance to everyone who took the time to read this and especially to those that are able to reply.
Debra