Good day crew, currently about to close in on my first property deal I believe to be a great investment prop(for a newbie everything looks like a great deal lol) it’s a MFH im getting for 360K and market prices are in the mid 400sK. Tenant occupied,it generates a rent roll of $5238. Minus ITI it comes down to $3897. Now im trying to figure out options to get the financing for this deal. I want to use OPM and little of my own money. Hard money loan for the 360k? Or go to a bank and get a mortgage? The owner needs cash since she is distressed (divorcing). Thanks in advance for advice.
Hi,
Go to the bank and get your self a 30 year mortgage usually due in 5, 10, 15 or 20 years as a balloon. This is your cheapest cash so if you can do it conventional financing is best way to go!
Next choice would be a private money lender as there interest rates, points and fees are much better than hard money!
Either of these two choices will require you to come to the table with 25 to 30% down!
GR
Thanks…so for the 25-30% down, let’s say I got a mortgage from the bank, will a private or hadmoney lender be willing to give me the down?
no, you will need to bring cash to the table,the bank wants you to have skin in the game
Ok thanks Andy
What market was the MFH? I’m pretty sure I know a way to get your deal done w/o big cash out of pocket.