90-100% LTV for flips in Massachusetts?

Question

Charlie MacPherson · Answer

Account Closed You might consider using the MBTA commuter rail, which should work well for much of downtown Boston.

Go to https://mbta.com/trip-planner Enter your start and end locations and it will give you options for public transit.

If that works for you, you can start looking further outside the city where prices are much more affordable.

Charlie MacPherson · Answer

Account Closed In that case, look south.  Norfolk, Bristol and Plymouth counties are where you'll find lower prices and better rent:price ratios.

Everything I've seen says that lenders want 70% to maybe 75% LTV.  You might talk with local lenders like Eastern Bank and Rockland Trust to see whether there are any portfolio loan options.

The fact that you don't have a lot of experience under your belt might be a problem though.

Matthew G. · Answer

Account Closed If you don't have the capital to put the required down payment and cover rehab costs, you are going to want to find an equity partner who can. The idea of no money down and using other people's money is possible, but without experience and an existing relationship with the lender will be very difficult.

Charlie MacPherson · Answer

Account Closed You might consider an FHA 203K.  96.5% LTV.  You can borrow funds to cover both the purchase and renovation costs.  Fannie Mae also has one called HomeStyle.

HOWEVER - you must owner occupy for a year, unless there are special circumstances.

Account Closed · Answer

@Charlie MacPherson that’d be a great strategy for the future, but not currently. I need to remain in downtown Boston for at least the next 2 years, where prices have a floor of $500k and anything in a decent neighborhood is $800k+. Down the road I’d shoot to house hack just outside of Boston, but my option is strictly flips for right now (possibly BRRRR depending on Mortgage options)

Andrew Syrios · Answer

At that LTV range, your best bet is private lenders; ma and pa types who are sick of getting 0.3% in a CD. We offer ours 8-9% interest only with a first position trust deed/mortgage.