Posted by ari on March 10, 2010 at 14:41:30:
Is the lender looking at the entire condo complex for the occupancy? I sell REO homes and multi family properties in several markets throughout the nation, and most of them are vacant. We usually get a tenant in them by the close of escrow. I have never had an investor tell me that the lender won’t finance a home due to the tenant not being in there. When you talk about the owner occupancy being low, what are you referring to? Of course it’s low, there is no tenant in place. Where are you getting the number of 35%?
Need Hard/Private Money for Investment in So CA - Posted by Katie
Posted by Katie on March 06, 2010 at 07:01:43:
I am currently qualified for a conventional loan however the particular property I want has low owner occupancy of 35% and my lender will not finance. It is a 2bd/2bth condo in San Diego for $100K and I would need 75% LTV loan. This would be a rental property for me and the monthly cash flow potential would be from $500-700/month.
Can anyone help?
Need Hard/Private Money for Investment in So CA - Posted by ari
Posted by ari on March 10, 2010 at 11:56:54:
A condo in San Diego for $100K? Not too bad. How much will it rent for? I know that lenders look at occupancy rate for apartments, but I’ve never heard of them doing that for a condo. If you are financing it non-owner occupied, you should not have a problem.
Re: Need Hard/Private Money for Investment - Posted by Katie
Posted by Katie on March 10, 2010 at 13:00:47:
It is a two bedroom condo near a college so rent could be between $1000-$1500/month. I am financing it non-owner occupied and that is why the lenders do not like the the owner occupancy so low. The 3 lenders I have talk to want said they will not finance it below 50% Owner Occupancy. Currently it is at 35%.