hello I am going to be closing on my very first investment property in Everett, MA. it is a 3 unit building all rented and have had the tenants screened and leased for the year. my question is are loan rates for investment properties higher than owner occupied properties? I got a rate of 5.375% on a 500K loan, is this high? my monthly income on the property will 5400/month
Congratulations on your purchase! That is not a bad rate for non-owner occupied. Is it an 80/20 LTV?
I am a licensed realtor with Keller Williams Cambridge and have had some experience in Everett, if I can be of service please do not hesitate to reach me. Have you chosen a lender you want to work with already?
I’m guessing you believe the casino coming online will be a good thing?
Franco, congratulations on your first deal! I would be looking to increase rents soon. Your mortgage payment will be around $3400 only leaving $2000 for property taxes, insurance, repairs, capital expenditures, and vacancy. That's pretty skinny. Even $100 per month per tenant would be helpful. Hope that helps.
@Franco Epifania yes investment property loans interests rates are usually higher then an owner-occupied property. 5.375 seems average but I would also shop around. Maybe post a questions asking for recommendations for banks in you area
Sean Carroll, Contractor
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