All Forum Posts by: James Atkinson

Hey Tim! From an outside perspective the question is whether cash flow early or long term equity is more important to you. With only 12k down it would be hard to get great cashflow right away. I'd be trying to figure out if there are ways you can improve the property in that 3 year timespan to increase rent or reduce expenses. You could look around at similar properties in the area as a starting point. If the property apraised for higher than the seller is asking and the income can be improved over time to at least 1.25 times the debt service, you'd be in good shape! Just my opinion.

Hey Alex, the penalty for breaking a lease is usually determined in the lease agreement itself under "Early Termination Clause". Typically it includes 1-2 months rent penalty and will usually ask that you give a 30 day notice. Hope that info helped

Hello, I'm looking for advice on securing a loan for a multi-family property. I have great credit and a reasonable cash reserve, but not quite enough for 20-25 percent down so I will need to mix in some creative financing options such as a second position mortgage or partial seller financing.

Outside of good credit and a detailed project summary on the property, what can I do to build credibility with a lender and secure more favorable terms on a loan? 

Any advice is appreciated. Thanks!