Single Family Residence
Residential Long-Term Rental10/15/2020
In October 2020, RCN Capital funded a private mortgage in the amount of $151,000 for a residential real estate investor in Ohio. The investor purchased a single family house in Columbus, OH for $45,000 in June. The house was quite dilapidated and needed a lot of work. The investor did $55,000 worth of renovation using their own cash over a 4-month period and planned to hold it as a long-term rental for cash flow. Once the rehab project was completed, they were able to lease the property for $1,500/month which is slightly higher than the market rent. Post renovation, the property appraised for $202,000. RCN Capital was able to provide a 30-year fixed rate loan at a 6.24% interest rate. The loan-to-value is 75% of the completed value.