OfflineLong time Reader first time poster. I purchased the SFL system and have dove into this 100%
I have found a 4 unit property that can cash flow 1500$ a month I'm looking to purchase.
Its listed at 200,000 property in Southern California and has 3 units with tenants already and 1 vacant unit
the tenants and rents are as follows
1b1b currently rented at $880 a month by long time renter
3b1b currently rented at $650 a month by long time renter
1b1b currently rented at $750 a month by long time renter
3b1b currently not rented
Mortgage on 200,000 prop with interest, PI and taxes would be around $1350
the current 3 occupied units already bring in $2280 a month!
the 3 tenants are already making OVER this monthly mortgage payment including prop tax and interest and Insurance.
A 4th tenant at 850$ a month would bring the cash flow of this property to over 1500$
I can not find a Hard money lender who will loan on this deal because there are not many comps on multi unit properties in the area and also because they want to all loan on ARV but the prop is currently occupied and turn key. It needs next to no work.
I have been overly conservative on these numbers and it still cash flows extremely well. The property has been on market less then 5 days and is a true deal.
Anyone willing to learn more and/or partner please private message me on here and I'll give you my personal cell number and or email.
I have 25k Liquid Cash perfect credit and more in Retirement accounts and Stocks please call ASAP this deal will not last.
Could you PM? I maybe able to help you with this deal.
Thanks,
Jonathan
Jonathan Jura
Jura Enterprises, Inc
P.O. Box 71
Delphi, IN 46923
www.juraenterprises.com
Just curious why not go with conventional financing? It sounds like your credit and assets are fine to qualify. Hard money is short term only...generally less than a year, and very expensive. Typically 15% interest only..so $3000 per month (in just interest) on $200k. Add in taxes, insurance and maintenance and it's no longer cash flow positive.
Tom
Trying to close quick with zero out of pocket. I currently own a home im upside down on so conventional lending is a little hard to come by.
Debt to income is outta wack if I picked up another property, so conventional Lending is a bit of a problem
Trying to close quick with zero out of pocket??? take a look at hard money lender websites, look at the terms, look at the LTV's.
You will not get 100% financing out of a hard money lender no matter how good the deal is. Also, you better re-figure the payments. Your looking at 13 to 16% interest, 2 to 10 points, appraisal fees, title fees, a site inspection fee is sometimes charged.
You will also not find too many hard money guys willing to let you roll closing costs into the loan.
Your best bet is private money. I don't mean to rain on your parade so to speak, but your trying to accomplish something that is not going to happen.
Also, most hard money lenders are not going to go above 65% and many will not go more than 55%, so you will need to come to the table with money, unless you can get seller financing for a second and a lender who will allow that.
Also if your going to have a second mortgage payment in addition to a first, your looking at a very possible negative cash flow.
If your thinking about a commercial hard money loan and not a residential hard money loan, allow me to tell you that anything less than 5 units is still considered a residential loan.
You will not get 100% financing out of a hard money lender no matter how good the deal is. Also, you better re-figure the payments. Your looking at 13 to 16% interest, 2 to 10 points, appraisal fees, title fees, a site inspection fee is sometimes charged.
You will also not find too many hard money guys willing to let you roll closing costs into the loan.
Your best bet is private money. I don't mean to rain on your parade so to speak, but your trying to accomplish something that is not going to happen.
.
i Would be looking to refi with local no season refi bank I'm working with to payoff HML in 1 maybe 2 months.
one of the reasons I started this thread was to try to find a HML who would let me "roll closing costs into the loan"
Some i have found do actually loan on ARV so in essence if i find one that rolls points/cost into loan and lends on ARV I can actually close with very limited out of pocket expenses.
I guess I titled my thread wrong and should have said Private/Hard Money. Private would be the best but i can and am willing to pay some out of pocket to make the deal work upfront.
The numbers work I believe and after the Refi it would def be a positive cash flow property for me as I am currently making my first mortgage payments just fine and would continue to live there.
No, I was working with strictly Residential Loans.
Thanks guys
I think it will be hard to use a HML to do a low "out of pocket" loan..but if it works out please let us know.
Personally I think it would be easier to use your cash and retirement funds to put the 20% down and close with conventional financing. One closing and a fixed low rate for 20-30 years. If you can get the seller to offer a 20% seller financing 2nd mortgage, you can then "repay" yourself with that and essentially you're getting about 100% financing.
Using HML or private money, you're still forced into the position of having to refinance within a few months. So you're paying for a double closing which adds up to thousands in points and closing costs. And if you can't refi for some reason, then you're stuck with a negative cash flow property with a pending balloon payment. It adds a lot of risk to the equation going that route.
- Tom