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1. you know it will have a positive cash flow how? Tenants already lined up?
2. It is worth $X and the reno costs $Y? How long does reno take?
3. Your other sources of income are what and approx how much?
4. There is a mortgage forum as well.
In the 90's, I was a commercial banker, and that included income-producing property loans. As with individual mortgages, it comes down to 3 things:
Credit (score for an individual, repayment history/capacity over time for a business)
Capacity (ability to repay on the given loan asset)
Collateral (what % loaned, how easy to liquidate)
Not really much you can do about #1 - it is what it is.
Back then, in the case of income producing properties, it was generally 1.3x debt service in cash flow (capacity).
And back then, it was typically 70-75% LTV for collateral/equity.
Talk to a lender or 3 and see what they can do for you. Best thing you can do here. I'd suggest a few different ones as they may have different loan options and requirements.
Thank you, I'm waiting for appraisal, etc. I'll be back with pictures if i can pull this off!
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