Seeking Mortgages for 3 Units

[Ernesto Hernandez]

Per the sticky post ... would love to reach out to as many lenders as possible so I'll be as specific as I can about my scenario. 

Your goals and story: Looking for the best solution to Cash Out Refi 3 units in Indianapolis on 30 year fixed mortgages, I live in California. 

Type of property: 3 SFH.

#1 is about 1150 sq ft, 3/1.5 acquired it already tenanted. Need a few more cosmetic updates which should be completed in the next 30 days. Purchased early June of this year all cash. Purchased at $35K, about $12K in updates including all new electrical. Should appraise at about $60K.  

#2 is also about 1150 sq ft 3/1.5 new tenant placed last month on an 18 month leases. Completely rehabbed. Purchased for 37.5 and rehabbed about $16k worth, should appraise at about 70-75k. Purchased in July, everything cash. 

#3 is being rehabbed now. About 1300 sq feet, 3/1 and 2 car garage. Purchased for $22K, rehab is about $26K, should appraise at about 65-70k. Actively looking for tenant. Purchased in July, everything cash. 

Location of property: 

#1 is in Indianapolis, 46218

#2 also Indianapolis, 46218

#3 also Indianapolis, 46208

Purpose of financing: Cash out refinance.

Type of financing sought: Fannie/Freddie, blanket loan.

Current or prior ownership of real estate: Currently own a primary residence in Seaside, Ca

Occupancy: See above. 

Value of property at present and/or your offer price: See above. 

After repair value: See above. 

Anticipated or actual appraisal issues: ?

Current rents per month: $625, $875, $Pending

Fair market rents per month: $777 for address 1, $800 for address 2, $800 for address 3.  

Down payment or equity: 

Source of down payment funds, if applicable: Own Funds

Income Source: Salaried/hourly W2,

Gross monthly income: $Rather not disclose here. Strong. Low DTI.

Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: See previous response. Low DTI.

FICO: Excellent.

Credit issues: None at the moment. Sub 5% utilization. 

Please PM me. Hopefully we can work something out!

[Chris Mason]

Hi Ernesto,

Looks pretty vanilla. You will want to finish the rehab on #3 prior to an appraiser showing up as part of a refi. 

Many lenders cap you at four financed properties even though Fannie goes to 10. Looks like you're about to be up against that limit fairly soon; I'd suggest finding a lender local to Indiana that doesn't have that cap now, so that you're knocking out two birds with one stone.