Thank you all for great bits of info off of this site. I’m having a hard time deciding what to do here. I want to aquire 8-10 more new/newer units for my park. I will use these units as rentals.
Is there anyone that would finance new homes at a non-“predatory” rate?
Maybe I’m just dreaming here. But here’s my situation:
I have a new park near Houston with 24 pads plus 3 commercial units that are rented out. I have 8 pads occupied with me owning only 3 of the units. The rest are owner occupied. Because of the incredible demand for rentals in my area (and the fact that my lots are short-60-64 footers fit best) I wanted to purchase a block of homes as rentals. For a 2/2 unit, I can get $600/ month due to my location and the condition of the park.
So I’m already approved for a cash-out refi. The park appraised for 575K. The lender wants me to take the loan. But I am hesitant. I only owe 140K on the property. The cash out refi with more than double my mortgage plus increase the interest rate. The previous owner currently carries the paper at 7%. Pretty good. So with a lender (Silver Hill), I’m faced with all the broker/lender fees, higher interest, PLUS a 7 year lock-out. I can’t even pre-pay the loan or I face paying 5% of the unpaid balance.
My credit is AA and my income is pretty good. Is there a program for just buying a block of homes? I don’t want to pay too much in interest either. I’m too tight for that! I want around 100K plus I’ll be using around 50K of my own cash to snag these homes.
Does anyone have any suggestions?
Thank you, mucho.