DSCR Loan for Single Family Rental Purchase in Texas City, TX

Funded by RCN Capital

$136,000

Deal Details

Private Loan Type

Purchase

Approx. Funding Date

10/27/2022

Property Type
Single Family Residence
Property City

Texas City

Property State

TX

Loan Term (months)

360

Lien Type

1st Mortgage

Payment Type

Interest Only

Purchase Price

$170,000

Loan-to-Purchase Price

80%

Borrower's Contribution to Purchase

41%

Source of Borrower's Contribution

Cash

Term

30 years

Rate Type

Fixed

Debt Service Coverage Ratio

1.42

Location Type

Suburban

Occupancy at Closing

Vacant

Building Square Footage

1,880

Lot Square Footage

5,280

Borrower's Plan

Long-Term Rental

Exit Strategy

Pay Down

Borrower Credit Rating

Excellent

Interest Rate

6.5%

Origination Points

2.5%

Deal Highlights

Strong borrower looking to purchase the subject property at 80% LTC to hold as a Long Term rental.
The borrower presents excellent credit 788 and good liquidity to complete this transaction.
The deal also provides a good DSCR of 1.42 based off the Market rent in the appraisal of $1850.  

Deal Summary

RCN Capital, a national direct private lender, funded a $136,000 DSCR loan for the purchase of a single-family residence in Texas City, Texas. The experienced Borrower was under contract to acquire the subject property for $170,000 with intentions of holding it long-term as a rental/income property. The subject property was appraised for $230,000 as-is and the Collateral Desktop Analysis (CDA) Report confirmed that the value was acceptable, so the real LTV at the time was around 59%. The appraiser estimated the market rent to be $1,850/month which results in a 1.42 DSCR (debt service coverage ratio). RCN Capital funded 80% of the purchase in 1st lien position and the Borrower contributed 20% cash. The Borrower had excellent credit with mid-scores of 788 and bank statements showed evidence of sufficient assets to justify the loan. The fixed interest rate was 6.5% and the loan term was set at 30 years. We charged 3% origination points. The subject property is approximately 1,880 square feet on a 5,280 square foot lot. This DSCR rental purchase loan was funded in October 2022.

Funded By

RCN Capital

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

Dealmakers

Michael Vivenzio

Loan Officer

Michael joined the RCN Capital team in the summer of 2020. Michael strives to develop meaningful long-lasting relationships with brokers and borrowers to help them achieve their financial goals. Michael comes into this position with a passion for real estate born from experience with his family-run Real Estate investment business over the past 5 years. Michael is from Massachusetts and earned a Bachelor’s Degree from Merrimack College in 2018.