All Forum Posts by: Larry Zucker

Investment Info:

Townhouse buy & hold investment in Raleigh.

Purchase price: $195,000
Cash invested: $40,000

First investment. Purchased townhouse with renter already in it. Has HOA which covers larger expenses like roof and siding, plus maintains property. Self-managed. Community pool included.

What made you interested in investing in this type of deal?

This type of deal has low maintenance since the HOA covers big ticket exterior items and it had an existing good tenant which meant immediate cash flow at closing.

How did you finance this deal?

Conventional financing was used for this deal.

I took that plunge last year and never looked back. You will not regret taking that first step.  Financing always a challenge.  Great job, Nicholas!

Thanks, @Kenneth Garrett
The commercial route sounds good to me. Just so I am clear though...when you say minimum debt coverage ratio of 1.25 that means the minimum rent = (Principal + Interest + HOA + Taxes + Insurance) * 1.25, correct? That does not sound to difficult to me.

I reached out to a couple to local commercial lenders and they both said they are swapped with PPP loans and need a couple of weeks to get back to me.  So in wait mode for now.

New to BP and really enjoying the great information in the forums.

I have two rental properties purchased in the past year with good cash flow. They are financed with 20% down through a conventional loan with a portfolio lending credit union. Between those two properties and my primary residence, there is not enough DTI left to do another conventionally financed deal and hard money seems too short term for a buy and hold.

I am hoping to find a lender that will recognize the rental cash flow as full supporting the rental properties debt so it does not weigh as much on DTI and if they can do that with no income verification that would be great.

Does such an animal exist?