Experienced real estate investor, developer and successful Mortgage Vintage Fix and Flip borrower sought a 2nd TD business purpose cash-out on this SFR + 2 ADU’s investment property in Costa Mesa, CA. Funds from our loan will be used to build a third ADU ($200k) and will be held in Funds Control and the remainder will be used for the builder’s nearby investment properties.
The 1st TD is $716,000 with an interest rate of 4.125% with a monthly payment of $3,470.74. The first mortgage impounds for taxes and insurance and matures in April 1, 2052.
The subject property is a single-family residence and was permitted to create a JADU, and this loan will provide funds to build a detached ADU. The front main house (Unit 1) is 1,149 sf and contains 2 bedrooms and 2 bathrooms and rents for $3,700 per month. The second unit (Unit 2) (JADU) is a 483 sq ft and is 1bdrm and 1 bathroom. This JADU is now complete and is in the MLS for rent for $2,495.00/mo. The new proposed new detached ADU (Unit 3) will be 799 sf and will be 3 bdrms and 2 baths. Total rents for the 3 units are expected to be more than $9,000. The property is located in the desirable West Side Costa Mesa neighborhood just south of 19th Street, close to shopping, entertainment and parks.
What We Like:
- Desirable West Side Costa Mesa, Orange County location
- $200k Funds Control
- Experienced Real Estate Investor and Developer
- 64.00% CLTV / 59.76% Net CLTV
- 6 mos Guaranteed Interest
- 6 mos Prepaid Interest
- Previous successful Mortgage Vintage Fix and Flip borrower
