I am looking for some ideas on finding a lender that will loan money on a rental property in Chicago.
The property is fully rented with no mortgages (two flat), I have owned the property for over 2 years. Cash flow is good.
My credit score is about average, we have well over 6 months worth of reserves in the bank for the loan on the rental property.
The FHA route might be one way to go however; taking 25% for vacancy will lower the potential loan amount quite a bit.
My goal is to get a loan and acquire other two or three flats to rehab and rent out all cash.
Thank you in advance for any help
P.S I own a single family that is rented as well with no debt.
Since you own this property free and clear I would advertise and market locally to:
Landlord owner wishes to borrow 75% of Fair Market Value = $xxx,xxx.00 dollars against free and clear property fully rented as a 30 year ammortized mortgage at 8.5% due and payable in 5 years! Please call Formula 280 SS at 1-800-speed200!
Rather than going to a conventional lender try to set your own note up on your terms! The example above gives you the idea!
Once you find the lender you will probable need to have the property appraised to ensure you protect yourself and your lender who will want to stay at about 75% or less to protect his money!