Investment property financing
I own two duplexes in Utah and decided to sell one. I am using a 1031 exchange and am in contract to buy an investment property. Because it is more than 4 units I need a commercial loan. The contract is for $397,000 and I have $125,000 from my 1031.
I am having the hardest time finding a commercial lender because only 2 of the 10 units are rented out because the owners don’t want to do it any more. In a month the property will be producing positive cash flow and in three months the property will be producing $3000 a month cash flow.
I could get approved for this in a second if it was a house because I have a stable income, great credit, and a low debt to income ratio. But I am finding that no commercial lenders will lend to me because it’s not producing cash flow right away.
What do I do?