Texas Ave, SE, Washington, DC 20020
The borrower is requesting a hard money loan to refinance an investment property. The property was purchased in 2005 for $410,000 . It is currently rented out for $1,800 per month. The cash out is going towards improvements to the property.
|Loan Amount:||$125,000 1st Mortgage|
|Value of Subject Property:||$290,000|
|Loan to Value:||43%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment rental property bringing in over $1,800 per month. The property is in a good area of SE DC with a lot of equity.
The cons are:
The borrower’s exit strategy could take longer than expected in this market.