DSCR Refinance with Cash Out for SFR Rental in Pompano Beach, Florida

Funded by RCN Capital

842,921

Deal Details

Private Loan Type

Equity Cash Out

Approx. Funding Date

10/21/2022

Property Type
Single Family Residence
Property City

Pompano Beach

Property State

FL

Loan Term (months)

360

Lien Type

1st Mortgage

Payment Type

Interest Only

Property Value

$1,900,000

Previous Loan Balance

$550,000

Loan-to-Value

44%

Term

30 years

Rate Type

Fixed

Debt Service Coverage Ratio

1.10

Property Neighborhood

Pompano Beach

Location Type

Vacation Area

Property Condition

Excellent

Occupancy at Closing

Tenant-Occupied

Building Square Footage

9,600

Borrower's Plan

Continue Rental

Exit Strategy

Pay Down

Borrower Credit Rating

Good

Interest Rate

7%

Origination Points

4%

Deal Highlights

Experienced Investor looking to cash-out on subject property and paying off $550k of existing lien.
Sponsor on the loan has good credit and bank statements reflect sufficient reserves.
80 feet of waterfront on one the best canals south of the Inlet. Less than 5 minutes to ocean.
Single family rental currently leased for $9,000 per month which is above the market rates.

Deal Summary

RCN Capital, a national direct private lender, funded an $842,921 DSCR long-term refinance loan secured by a single-family residence in Pompano Beach, FL. The Borrower is an experienced investor looking to cash out on the subject property and pay off an existing lien. The subject property’s value was approximately $1,900,000 as-is, subject to a Collateral Desktop Analysis, so the loan-to-value for our 1st mortgage was 44%. We paid off a previous loan balance of $550,000 and provided over $290,000 in cash-out funds. The subject property was being leased for $9,000 per month which was above the market rates as per the appraiser’s estimate of $8,500. The Sponsor had good credit with a mid-score of 693 and bank statements that reflected sufficient liquidity which met our reserve requirement. The total loan amount was 43.3% LTV with a 1.10 DSCR. The 9600-square-foot property was in excellent condition. The fixed interest rate was 7%. We charged 4% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in October 2022.

Funded By

RCN Capital

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

Dealmakers

Mike Lane

Team Loan Officer

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