LTV On ARV

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How is realistic is it to expect to get an 80% LTV mortgage on a property that has an NOI of approx $62K?

Additionally, if the cash flow can support it, to what level would it be possible to get a second mortgage on the same property?

Thanks.

Comments(3)

  • InActive_Account9th April, 2004

    Not even close to enough details to give you an answer.

  • mah9th April, 2004

    Here are some more details.

    It is a 19 unit apartment building with the majority of the units completely rehabbed, newer roof, exterior updates to "pretty it up", separated utilities, including a complete re-wire and individual high efficiency furnaces in all of the units. Laundry in the basement, 1 block to the busline and approx. 15 minutes from downtown Pittsburgh.

    NOI, depending upon the amount mortgaged and the terms, should be in the neighborhood $1,500/month.

    The building is in a decent neighborhood--not great, but not blight. Solid blue collar.

    Does this information help? What else could I provide to you?

    Thank you, and my apologies for the brevity of the initial post.

  • InActive_Account10th April, 2004

    Hows your credit and how much do you plan to put down?

    What is the loan amount?

    What is the gross montly rent?

    What are your plans for the property?

    Your asking about an 80% LTV loan. My question to you is are you putting 20% down or do you want the loan based on sales price.

    Normally with good credit experice in rental properties and 20% down on a property producing good cash flow in good condition a loan of 80% LTV is not a problem.

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