Borrower sought a business purpose cash-out 2nd TD on this owner-occupied duplex in LA. Funds from our loan will be used to complete the remodel of one of the units of the duplex. 100% of the construction budget will be held in escrow funds control.
The subject is a bungalow style detached duplex. Unit #1 is 624 SF with 3 rooms and 2 BR/1 BA. Unit #2 is 480 SF with 3 rooms with 2 BR/1 BA. The property needs some work and funds control will ensure that the upgrades will get completed. The subject is near schools, shopping, restaurants and medical facilities. Interstate 110 is just a few minutes away. Projected rental income for the rehabbed unit is $1,200/month. 1st TD is at 5.125%. Daughter of the borrower will be moving in with the mom very soon and eventually onto title. The daughter has a 700+ fico and a full-time job enabling her to help qualify for a conventional loan to exit our MVI loan.