16th Street, NE, Washington, DC 20002
The borrower is requesting a hard money loan to refinance a free and clear investment property. The property was purchased in cash 2 years ago for $95,000 and was renovated. The cash out is going to be use to renovate another property she owns free and clear and some of the money to spruce up the subject property. The subject property is currently rented at $2,300 per month. HMB is holding $15K construction holdback.
|Loan Amount:||$85,000 1st Mortgage|
|Value of Subject Property:||$250,000|
|Loan to Value:||35%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||pay off from sale of other rental|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has experience flipping and managing rental properties. The current property is rented out for $2,300 per month.
The cons are:
The borrower’s exit strategy of selling could take longer than expected.