Rural property deal and financing
I am in the identification period of a 1031 property exchange. I have already settled on a few cash properties, but I also need to secure about $400,000 in new mortgage debt. I have found one rural property that has 8 rentable units and 1.7 acres. The property is listed for 500k and I could essential acquire all of my new debt by acquiring this property. With all expenses and projections accounted for, the property will cash flow about $20,000 a year with 25% down, a $375k loan at a 6.6% interest rate.
Really my biggest hang is financing. I am not sure how I should go about it, or even what kind of loan or lender I will need. What can I expect and do you think my projected 6.6% loan rate is realistic? What types of terms are out there and what would you aim for?
Just wondering
Thanks!!!