Posted by RJ Baxter on September 11, 2006 at 07:21:22:
I have run into this many times over the years…
You may be able to do this with a commercial mortgage, however, that is not my speciality, so I can’t advise you on that.
However, if you are talking about a residential mortgage, you are going to have a hard time. Residential lenders do not like to finance properties that have more than one house on one parcel. Your best bet, if it works for your scenario, is to get a survey done and divide the parcel into three parcels and obtain 3 separate mortgages.
If you decide to continue to pursue it as one parcel with three houses, assuming you find a residential lender who is willing to consider it, you will have to find comparible properties in your area that have 3 similar houses…so, that might also prove impossible.
I have been a fan (albeit from afar) of this site for a long time. It seems anytime I have had a question in my personal investing situations, I have been able to find someone with a similar problem on here who has posted and received great guidance and advice - which I have then also used in my circumstances.
Not true this time. I can’t find a solution for this one in the archives. Your help would be greatly appreciated.
I am purchasing a parcel that contains one 3/2 SFR, a duplex and a mobile home. My questions are:
How will I apply for this loan–I mean, will it be just one loan to cover all three buildings on the property? I am assuming that is true, but would like confirmation.
What will be the required percentage down traditional investment lenders will require? (seller-financing is a no-go here) I have done 4 single family rentals and always put only 10% down. Will that apply here also?
Any recommended lenders?
Lastly, I am also interested in another parcel that has a 3/1 SFR and a duplex on it. Will lenders balk if I apply for 2 loans (one for this parcel and one for the other)? Wife and I have 750+ credit and nice history of buying, renovating and filling immediately with good tenants.
Thank you again for your help (both now and in the past).