All Forum Posts by: Account Closed

You would need commercial lending for that. Residential mortgage does not apply to commercial buildings.

I would echo Caleb's suggestion. Hard money loan would be ideal for your case. They don't require W2 income proof. As long as the deal makes sense and there is profit, you are qualified. Currently interest rate for first time flippers is around 10%. With the interest only payment option and no prepayment penalty, you actually will not pay too much interest if you can finish up the project 3-6 months.

What kind of fees and interest rate you get from your lender currently? You said this is your first multi property purchase, do you have experience on single family fix and flip in the past 3 years?

@Lamar Lee Yes, it is $75k.

Are the properties in livable condition and ready to rent out? Do you have the rent/tax/insurance/HOA of the properties? As @Mary M. mentioned, commercial loan would be your ideal choice to purchase this in a package. I have had some experience with such financing solution, called portfolio loan or blanket loan. The rates are 4.5-5.5% with 1-3 points, LTV can go up to 80% for purchase.

@Chad Coon you can also try DSCR loan if it is difficult to qualify for a residential loan. DSCR loan takes the rent income and tax/insurance etc expense to underwriting.

@Max Horenstein, if you are looking for a loan for your primary home, it’s hard to get around the 2-year income history unless you try local small banks or credit union. If you are looking for a loan for investment property, there are lenders who can help you out. They look at the rent income of the property. If it’s enough to cover all the expenses and mortgage payment. You are qualified. Interest rate is about 2% higher than conventional residential mortgage.

For buy and hold investment, there is another HML type based on the rent income and expense of the property. As long as your credit score meets the minimum and have the liquidity for the down payment/closing cost, you can go with that route. The interest rate right now is 4-5.5% 30-year fixed, 2-3 points. The house needs to be in livable condition and it needs to be rented out within 2-3 months after purchase.

Buying this many properties at once will need to go to commercial loans. The loan is evaluated based on the rent income and tax/insurance/HOA/other expense. If DSCR is greater than 1.2, you should be comfortable to qualify a loan. DSCR = (rent income - tax - insurance - HOA-other expense)/mortgage payment. Your credit score is strong. DTI doesn't matter here. Usually 80% LTV for purchase and 75% LTV for refinance. So if you are confident about the rent income, this is doable.

Is the property mixed use with both commercial and residential purpose? If yes, a commercial loan would be ideal for this types of property. Commercial loan is underwritten again the cash flow of the property.