DSCR Refinance for SFR Rental Portfolio in Las Vegas, Nevada

Lima One Capital, a lender for residential real estate investors, funded a $1,330,000 DSCR long-term rental loan in 1st lien position secured by a portfolio of residential investment properties in Las Vegas, NV. The investor needed to refinance a portfolio of six single-family rentals but they found themselves caught by the rapidly increasing rate environment of 2022. They needed a solution that provided security against rising rates while also offering enough leverage for them to get equity out of their portfolio to be able to scale their business. The value of all 6 properties was estimated to be $2,240,000 so our loan-to-value was 60%. The investor had a menu of options and selected a 5-year interest-only loan with a 25-year amortization. This gives the investor the lowest possible monthly payment while rates are high, allowing them to wait out the high rates while getting equity now. The subject property was tenant-occupied at closing. The Borrower plans to continue leasing the property long-term. This SFR long-term rental loan was funded in October 2022.