Brief Overview
Borrowers and business owners sought a $1,225,000 business purpose 2nd Trust Deed cash out refinance loan on this owner and non-owner occupied Duplex investment property on Balboa Island, Newport Beach, Orange County, CA that is very well located a few blocks from bayfront beaches. The borrowers will be using the loan proceeds to pay off two existing and in good standing junior liens ($250K Heloc and $300K Business lien). The balance of the loan proceeds will be used to take borrowers’ product to market. Borrowers have coveted permit on Balboa Island for active Short-Term Lodging (STR) for their back unit which earned $103,060 in gross sales in 2024 on Airbnb.
The borrower’s 1st mortgage is current and in good standing with Shellpoint and has a principal balance of $1,585,361 with a fixed interest rate of 3.25% until February 2031. The total monthly payment including taxes and Insurance is $7,659.
Property Description
The subject property is a two-story, 2,494 SF Duplex sitting on .06 acres lot on popular, Balboa Island, Newport Beach, CA. The Duplex has been fully renovated and consists of a total of 11 rooms, 5 bedrooms and 3 bathrooms. In addition to new interior renovation, the exterior has been refinished with smooth stucco. The property features an attached two car garage, courtyard, multiple decks, new appliances, new flooring and new bathrooms. The front unit consists of 3 bedrooms and 2 baths. The back unit sits above the garage and consists of 2 bedrooms and 1 bath with a extra bath off the side of the garage. The subject property is well located near the beach, shopping, entertainment and downtown Balboa Island.
What we like about this Trust Deed opportunity:
- Fully renovated Duplex on Balboa Island, Newport Beach, CA
- Rear Unit earns on average $8,500 monthly on Airbnb
- Borrowers have coveted permit on Balboa Island for active Short-Term Lodging (STR)
- Protective Investor Equity $1,899,639
- Borrower W2 income plus Airbnb income
- 11.00% Lender Rate
- Low Fixed 1st TD Mortgage in good standing
- 6 months Prepaid Interest
- 6 months Guaranteed Interest
