DSCR Refinance for a Fourplex in St. Petersburg, Florida

RCN Capital, a national direct private lender, funded a $1,043,285 1st lien position equity cash-out loan secured by a 4-unit residential property in St. Petersburg, FL. The property value was estimated at $1,630,00 so our loan-to-value was 64%. We paid off a previous loan balance of $891,094 and provided some cash-out. The Borrower is an experienced investor who has owned the property since 2020. It was leased for $10,040 per month which is slightly less than the market rates per the appraiser’s estimate ($10,300). This resulted in a 1.10 DSCR (debt service coverage ratio). The property was appraised for $1,630,000.00 as-is, confirmed by a Collateral Desktop Analysis. The Sponsor had excellent credit with a mid-score of 735 and bank statements that reflected a sufficient balance to close the deal. The loan was structured and priced in accordance with our qualification model. The 4,247-square-foot subject property was in excellent condition. The Borrower plans to continue leasing the property and hold it for a long term. The interest rate was 7.41% with amortized payments and an adjustable rate. We charged 2% origination points. The loan term was set at 30 years. This DSCR refinance loan was funded in September 2023.