Business owner and real estate investor asked for a business purpose cash-out 2nd TD on this non owner-occupied duplex in Los Angeles. Funds from the loan were used to payoff an existing 2nd TD.
The subject is a well maintained 2 story, 4 BR/3 BA Duplex located in the Echo Park neighborhood of LA. The property measures 1,645 sf of gross living area and is situated on a large 7,224 SF lot. The subject is centrally located to freeways, schools, parks, shopping and medical facilities. Dodgers Stadium, China Town and Sunset Blvd and nearby. Combined monthly rental income is $5,400. The 1st mortgage is held by Bayview at 2%. The interest rate is fixed until 6/1/21 at which time it may adjust.
This loan is 63.38% CLTV on the BPO Value of $1.235M with 6 months Guaranteed Interest and 3 months Prepaid Interest, yielding a 10.25% annualized return.