Need Income-Based Lender for Triplex Refinance
My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.
The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.
My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.
Thanks in advance for any experiences, intel, or resources you can provide.
Most Popular Reply
Hey Ian,
If it is a DSCR loan, then that is exactly what it should be doing. Are you wondering if there are any that would go above 80% LTV to completely pay off the bridge?
If there is still a shortage based on appraised value, then you might be stuck unless you have another property with some equity you could bundle into a small portfolio or get a small HELOC on to help cover the closing costs?
Happy to connect and talk through numbers if it would be helpful
Good luck!