DSCR Rental Purchase Loan for Triplex Rahway, New Jersey

Funded by RCN Capital

$345,600

Deal Details

Private Loan Type

Residential Long-Term Rental

Approx. Funding Date

05/24/2023

Property Type
2-4 Units Residential
Property City

Rahway

Property State

NJ

Loan Term (months)

360

Lien Type

1st Mortgage

Payment Type

Amortized

Purchase Price

$432,000

Loan-to-Purchase Price

69%

Borrower's Contribution to Purchase

31%

Source of Borrower's Contribution

Cash

Term

30 years

Rate Type

Fixed

Debt Service Coverage Ratio

1.29

Location Type

Urban

Property Condition

Good

Number of Units

3

Building Square Footage

1,872

Borrower's Plan

Long-Term Rental

Borrower Credit Rating

Excellent

Interest Rate

7.48%

Origination Points

3%

Deal Highlights

Borrower looking to acquire a 3-unit property and hold as a long-term rental.
Property is currently leased above market rents for good cash flow, DSCR of 1.29.
Borrower acquired property for roughly 70k discount.

Deal Summary

RCN Capital, a national direct private lender, funded a $345,600 1st lien position long-term rental loan for the acquisition of a 3-unit residential investment property in Rahway, New Jersey. We funded 69% of the $432,000 purchase price, while the Borrower contributed 31% cash at closing. The subject property was being leased for $5,533 per month which was above market rate per the appraiser’s estimate of $4,300. It was appraised for $500,000 As-Is and Collateral Desktop Analysis confirmed the value was acceptable. The Sponsor had a mid-score of 766 and bank statements that reflected sufficient liquidity. The loan was structured and priced in accordance with the qualification model. The total loan amount was 80% loan-to-cost and 69.12% loan-to-value with a 1.29 DSCR. The Borrower plans to hold the property as a long-term rental. The subject property was in good condition. It was is approximately 1,872 square feet. The interest rate was fixed at 7.48% with amortized payments and we charged 3% origination points. The loan term was set at 30 years. This DSCR loan was funded in May 2023.

Funded By

RCN Capital

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

Dealmakers

Scott Evans

Regional Loan Operations

Scott joined RCN Capital in October 2022. Working from his satellite office in the Orlando market, he brings 4 years of private lending experience to help build and expand RCN’s preverbal footprint to the bourgeoning investor real estate industry in the Sunshine state. Scott has had the good fortune to attend over 100 conferences where he established a solid reputation and developed substantial relationships throughout the industry nationwide. He looks to strengthen and expand RCN’s involvement in those trade associations in the Southeast Region in the near future.