All Forum Posts by: Gaurav K.
Gaurav K. has started 4 posts and replied 18 times.
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
Originally posted by @Karen Schimpf:
@Gaurav K. Since COVID 19 many lenders are requiring more down. The term you are being quoted is very good for purchase price of $550K. To get better terms and rate, the minimum loan amount must be over $1MM. If your loan was above $3MM HUD loans rock because the product is a fixed 35 year in the 3's. Once again, this is a good term and rate for the loan size.
Thanks Karen!
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
Originally posted by @John Warren:
@Gaurav K. I would need a lot more information to know if it makes sense. Is there upside in the rents? What is the utility structure? Do tenants pay some utilities? All utilities? What deferred CapEx projects will you be taking on? Roof? Tuck pointing/siding? Windows? Plumbing? Electrical? Parking Lot?
These are the types of questions I look at to see if something makes sense. Honestly, the financing is important but not nearly as important as some of these questions.
Thanks John, but the deal fell through!
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
Originally posted by @Benjamin Whitney:
@Gaurav K. I was recently quoted similar terms on a multifamily C class property (14 units) at 650k (5 year fixed, 4.25%, 25 year amortization, 20% down). I suppose only difference was no balloon payment (which is typical and most other terms I was quoted had), and a lower LTV.
This was from a semi-local community bank in my area. Hope it is helpful from a reference standpoint.
Thanks Ben!
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@Michael Dang Hello Michael, What other information do you need to analyze the deal and mortgage?
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@John Warren Thanks John. What do you think about the deal? Is it worth buying the property. It is in a C+ neighborhood.
Post: Commercial Mortgage Loan Advise
- Rental Property Investor
- PA
- Posts 18
- Votes 4
I am buying a 10 unit apartment building for $550k. Each unit rents for $650/month and taxes are $15k/year. I am getting a Mortgage Rate of 4.25% and it’s 5 year fixed, 10 year balloon, 25 year amortization - 30% cash down.
Based on your experience, do you think it is a good deal and good mortgage rate? Are balloon payments normal in these transactions? Are there better mortgage options for buying apartment buildings? If yes, can suggest some better alternatives. My credit score is 790+.
Any advise will be appreciated.
Thanks!
Post: New Member - Norristown
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@Marlen Weber Thanks Marlen!
@Alan Blitz Taxes are low and you will have a positive cash flow. Best of Luck!
Post: New Member - Norristown
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@Alan Blitz Hello, just curious to know the ARV of the property and how much are the taxes.
Post: New Member - Norristown
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@Neil Henning I do this as a part-time hobby and didn’t have a chance to explore other places. There are a lot of investors who are investing in Norristown and therefore, the prices have gone up. Let me know if I could be of any help!
@Percy N. Thanks for the advice.
Post: New Member - Norristown
- Rental Property Investor
- PA
- Posts 18
- Votes 4
@Alan Blitz Congrats Alan, let me know if I could be of any help!