DSCR Rental Purchase Loan for Single Family Rental in Laurel, Maryland

Funded by RCN Capital

256,014

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

09/30/2022

Property Type
Single Family Residence
Property City

Laurel

Property State

MD

Loan Term (months)

360

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$365,000

Loan-to-Purchase Price

70%

Borrower's Contribution to Purchase

30%

Source of Borrower's Contribution

Cash

Term

30 years

Rate Type

Fixed

Debt Service Coverage Ratio

1.10

Location Type

Suburban

Property Condition

Good

Occupancy at Closing

Tenant-Occupied

Building Square Footage

1,520

Borrower's Plan

Long-Term Rental

Exit Strategy

Pay Down

Borrower Credit Rating

Good

Interest Rate

6.42%

Origination Points

3%

Broker Commission

$3,200

Deal Highlights

Experienced borrower was looking to purchase and hold a long-term cash flowing rental property.
Property is located in an excellent spot in northwest Maryland, just north of Washington DC.
Borrower has a mid-FICO of 688, and RCN was able to provide a loan amount of 70% of purchase price.
Borrower contributed 30% down payment and had ample cash reserves on hand as well.
Four total points on the deal at closing.

Deal Summary

RCN Capital, a national direct private lender, funded a $256,014 loan for the purchase of a single-family residence in Laurel, Maryland, a mostly residential suburban community conveniently located 20 miles from both Washington D.C. and Baltimore. The purchase price was $365,000. RCN Capital funded 70% of the purchase in 1st lien position and the Borrower contributed a 30% cash down payment at closing. The Borrower was an experienced investor looking to purchase and hold a long-term, cash-flowing rental property. They had an average credit with a mid-score of 688 and bank statements that reflected a balance of $592,962.03 in assets/liquidity. The loan was structured and priced in accordance with RCN’s qualification model. The Appraiser’s estimated combined market rent is $2,325/month, which resulted in a 1.10 DSCR. The fixed interest rate was 6.42% and the loan term was set at 30 years. We charged 3% origination points, and the broker earned a $3,200 commission. The property was in good condition with an approximate square footage of 1,520. It was already tenant-occupied at the time of funding. This DSCR rental property loan was funded in September 2022.

Funded By

RCN Capital

Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans

Dealmakers

Loan Officer

Tommy Kaye

Tommy joined RCN Capital in 2019. He strives to ensure that investors find a product that best fits their financial goals and livelihood. Tommy’s main goal is to build and maintain positive professional relationships with brokers and borrowers alike.

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