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?
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#2 Marketing Your Property Contributor
- Flipper/Rehabber
- Wilton, CT
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#2 Marketing Your Property Contributor
- Flipper/Rehabber
- Wilton, CT
All, listen to me carefully.
Flipping houses in not just a niche. It is a strategy.
You HAVE to flip houses to keep some serious capital coming in. Even if you don't like flipping, just flip as a means to buy B&H (I STILL can't see how buying houses and holding them is a wise choice.. but hey... it's your choice).
When you flip, you will always have capital to do what the hell you want ;)